2017 Year in review: Non-tire firms expand, consolidate

Most of the non-tire sector saw investments, with new plants popping up and new deals that reshaped the landscape of the industry. It wasn't all growth, though, as some companies pulled back and restructured to set the stage for the future. Here are some of the highlights from the hose, belting and other non-tire areas.

Carlisle makes big splash

A hundred years is a long time, but Carlisle found a way to do something it's never done before.

The firm made the largest acquisition in its century-long history with its $670 million deal to buy Accella Performance Materials Inc. from its private equity owner Arsenal Capital Partners L.P.

The new Carlisle Construction Materials business unit will bring a $430 million company that operates 10 production sites into the fold, significantly enhancing its presence in the polyurethane spray foam and insulation foam markets.

Accella represented the third major deal for Carlisle's construction unit in 2017—also adding Drexel Metals Inc. and Arbo Holdings Ltd.

But the Accella deal will bring significant market diversity, also boosting its tire fill division, specialty polyurethane unit and recycled rubber business. Carlisle said it doesn't plan on divesting any of Accella's other businesses.

Semperit terminates ventures

Semperit A.G. consolidated on a number of fronts.

In separate moves, the firm terminated joint ventures with Sri Trang-Argo Industry Public Co. Ltd. and Shaw Almax Industries Ltd.

Its ventures with Sri Trang impacted its Sempermed, Semperflex and Semperfoam businesses in the U.S. and Asian regions. The agreement de-merged their large protective glove production joint venture, Siam Sempermed Corp. Ltd., in Thailand amid other moves that brought full ownership of complexes throughout the two regions under Semperit's umbrella.

As for Shaw, the firms terminated their conveyor belt cooperation agreement they've had in North America since 2016. Semperit's U.S. sales, distribution and warehousing arm Sempertrans USA L.L.C. and Shaw Almex will continue to operate separately in the region.

The firm also closed its belting plant in Argenteuil, France, relocating production to its large complex in Poland. The firm has been expanding in Poland with new equipment in preparation for the move.

But the Semperit's Semperflex unit expanded its operations, launching the fourth addition at its hose facility in the Czech Republic.

Gates enhances footprint

After two years of ownership under Blackstone Group L.P., Gates Corp. is returning to the offensive.

The $4 billion company has plans for additional plants in Poland and Mexico within the next two years and, in a separate move, also plans to increase employment by 10-15 percent each year to chase growth primarily in Asia.

It also finalized two acquisitions in 2017—Atlas Hydraulics, a designer and manufacturer of hydraulic hose and tube assemblies, and TechFlow Flexibles Ltd., a producer of power and power transmission products.

The firm will work to integrate both firms in the next six months and sees strong opportunities for TechFlow's product line. But more importantly the investments signal that one of the largest rubber product manufacturers is back in the hunt.

Lauren grows in Ohio

It wasn't all about the big guys in 2017.

Lauren Manufacturing made significant investments at two of its manufacturing facilities in New Philadelphia, Ohio. The firm added about 10 new extrusion centers and additional capabilities to support its growth at the combined 200,000-sq.-ft. rubber manufacturing operations. It intended to increase its work force by more than 50.

The firm cited strong quoting activities during the last two years as the primary reason for the investment, but it's also using it as an opportunity to improve its efficiencies—including 5S, single-piece flow, floor space management and material/information flow.