Fukoku adds more production in U.S.

LAURENS, S.C.—Fukoku America continues to strengthen its presence in the U.S. market.

The firm is in the process of adding six new machines to address additional growth within the region. The automotive supplier is investing $3 million and will install the machines two at a time in each of the first three quarters of 2019.

The firm will add about 20 jobs in conjunction with the new equipment. It currently employs about 150 people at its 105,900-sq.-ft. facility in Laurens that opened in 2001.

"We have a very aggressive sales force and a fantastic sales manager," Plant General Manager Bob Schulmeister said. "They're out there growing our business. We have some of the highest quality in the industry and we're cost-competitive."

At Laurens, Fukoku produces four product lines, all for the automotive industry: plastic constant velocity joint boots, plastic steering column boots, rubber brake booster diaphragms and rubber radiator seals. It operates a warehouse so its sister plants can ship product into the U.S. region and also allocates some of that space for customers.

The firm is primarily a Tier 2 supplier, but directly supplies Honda rubber-produced supply pulley seals.

Fukoku America is a subsidiary of Ageo, Japan-based Fukoku Co. Ltd., which makes rubber and plastic products for the automotive industry with some industrial applications. The parent company employs about 6,000 at 20 locations. After the U.S., the remaining locations are mostly in Japan with others in Thaliland, India, Vietnam, China, the Czech Republic and Mexico.

Its products include radiator seals, boots for steering columns, constant velocity joint boots, damper pulleys, brake booster diaphragms, wiper blade rubber, radiator gaskets, duty valves, piston seals, anti-vibration products, vibration control products and resins. Fukoku's largest global business is its rubber wiper blades.

The firm established the Laurens site in 2001. Within three years it doubled in size as it merged a sister company from Illinois into the South Carolina location. Schulmeister said one main key to Fukoku's global success is its emphasis on culture.

"Fukoku Japan is very aware of the global environment," Schulmeister said. "They understand the differences in cultures, whether it's America, Czech Republic or China. They go out of their way to make sure when there are ex-pats from Japan that they go through several classes just to learn the culture of the plants they're going to be assigned to."

The firm is in the middle of a $13.9 million investment at the Laurens site, which began in 2017 and at the time intended to add 30 new machines and 65 jobs. Schulmeister said these new machines are part of that project. The firm has four new machines scheduled for 2020 and four more in 2021.

At that time, Schulmeister said the firm will have to consider either outsourcing its warehousing space or expanding the building to accommodate future growth. The Laurens site sits on 200,000 square feet of total available land.

"We're projected to grow through 2022," Schulmeister said. "We have a five-year plan that we're executing. We're adding additional equipment and jobs every year."