Capital dollars flowing: 4 major expansions in 2022

When the coronavirus panic first hit, the investments to fund facility expansions and new factories dried up, unless it was for personal protective equipment projects.

But as the world nears the third anniversary of the COVID-19 pandemic, companies in the rubber and tire industry are starting to boost operations in North America, as well as worldwide.

Some may be looking to shorten the supply chain as part of a "build local to supply local" mindset, while others are looking to meet growing demand or bring in new technology.

Here are four examples that show capital spending levels are healthy.

Continental A.G.'s ContiTech business and Norres North America Inc. may play in different sectors of the hose industry, but both saw the need for new facilities on the continent.

Norres North America has been operating since 2014, and this year it opened up a 55,000-sq.-ft. factory in South Bend, Ind., nearly double the size of its prior plant. It primarily manufactures polyurethane hose, ducting and high-temperature exhaust hose, and needed the new space to help support its growth in the industrial hose market.

Continental long has been a leader in the industrial rubber hose sector, but lagged in the hydraulic hose business. ContiTech expects to make major inroads with hydraulic customers in the coming years with the $40 million hydraulic hose factory it plans to build in San Luis Potosi, Mexico.

Construction on the facility was expected to start in late 2022, with production slated to begin in 2024.

KINSTON, N.C.—High demand for compression molded medical components has led West Pharmaceutical to a $70 million expansion at its plant in Kinston.

With 206,000 square feet and 600 employees already there, West said Feb. 1 it plans to expand the site by 63,000 square feet and add 70 jobs. The rubber goods firm makes containment and delivery systems used in the medical industry, and said the industry still is vital in battling the pandemic.

"Our entire West team is very excited about the role we are playing and what it means for our customers and patients around the world," said Mike Fischer, senior director of operations at West.

AKRON—Those with historic ties to the tire industry in Akron likely are familiar with the iconic Firestone sign that long watched over the southern edge of the city's downtown.

Now the sign has been refurbished and moved a few blocks farther south to hold fort over the new $21 million race tire plant that Bridgestone Americas Inc. built in Akron. The 80,000-sq.-ft. Advanced Tire Production Center will build the 25,000 Firehawk racing tires that the company supplies to the NTT IndyCar Series each racing season.

"We leverage racing, also, as a test for really accelerating our innovation," said Nizar Trigui, Bridgestone Americas chief technology officer and group president of solutions business. "… And that quick learning is key to accelerating our development and our learning for all of our products."

NEWNAN, Ga.—Austria's Semperit A.G. long had hoped to begin manufacturing rubber products in the Americas.

It realized that dream in July when it opened a $10 million, 150,000-sq.-ft. plant in Newnan to build a wide range of sealing products. Semperit also relocated its North American headquarters, warehouse and distribution center operation from Stone Mountain, Ga., to the new site just south of Atlanta.

In addition to boosting growth in North and South America, the company said its growing manufacturing presence in the U.S. will help it gain greater traction in the industrial product sector.

"We're fully confident that investing in the ongoing growth of the Semperit Group within the world's biggest economic region will be critical to our future success," CEO Karl Haider said at the opening ceremony.