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December 18, 2019 11:37 PM

Year in Review: Hose industry active with U.S. expansions

Chris Sweeney
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    The hose industry enjoyed a particularly active 2019 with multiple companies either expanding their manufacturing networks or making acquisitions.

    One of the biggest moves was Flexaust Co. Inc. adding a new hose production plant in Burlington, N.C., as part of the firm's strategic growth initiative. The company is leasing an existing 57,000-sq.-ft. factory with plans to invest $3 million during the next two years for new equipment and infrastructure upgrades. The firm plans to install five hose production lines and add 30 jobs within the next two years, with that figure reaching about 50 in five years. Production is scheduled to begin in the first quarter of 2020.

    Flexaust also expanded in two other locations, opening up a 10,000-sq.-ft. expansion at its Amesbury, Mass., site to house additional production equipment, warehouse space and expand the facility's machine shop. It also began the process of adding 27,000 square feet of warehouse space at one of its three facilities in Warsaw, Ind.

    Davlyn Group added onto the headquarters of its Davlyn Manufacturing Co. unit, also integrating that business with its Darco Southern operation. The firm added about 35,000 square feet to its Spring City, Pa., site, bringing its total size to more than 100,000 square feet. The company makes a variety of thermal protection products, many lined or coated with silicone.

    Finally, ZYfire has put itself in position to set up manufacturing in the U.S. should the tariffs imposed on Chinese imports become too high. It currently operates out of a more than 1.6 million-sq.-ft. facility in Jiangsu, China, with 350 employees and 200 production lines focused on a variety of hose types. The firm said about 65 percent of its hose revenues are generated in the U.S. with the remainder spread across more than 60 countries/regions.

    Mixing things up

    Semperit A.G.'s company-wide restructuring effort continued into 2019, and is expected to be complete by the end of 2020.

    The firm also disclosed in the spring that it's Sempermed medical segment will undergo reorganization measures, allocating 36 months for the project. The plan will target the structural challenges within the unit's business processes, including information technology, product development and market approach.

    Trelleborg A.B. will be reducing its business segments to three from five as it reclassifies several business units into a special segment focused on developing them toward profitability. The firm in May opened a new 156,250-sq.-ft. site in Aurora, Ohio, that consolidated four buildings into a new facility, serving as the American headquarters for the Trelleborg Sealing Profiles business unit.

    Tristone L.L.C.
    Tristone broke ground on its North Carolina facility last year. It opened the site in 2019.

    Planting the flag

    Tristone Flowtech Group GmbH began production of engine cooling hoses at its new manufacturing plant in Mooresville, N.C.

    The Frankfurt, Germany-based manufacturer of hose, pipes and surge tanks officially opened the site on April 17, representing a $23.7 million investment. The site will produce hoses for a U.S.-based automotive customer and initially employed 40. The company said at the time it anticipated to employ 100 at the site and projects that figure to increase to 300 by the end of 2021.

    Tristone wasn't the only firm that grew this year. Garfield Heights, Ohio-based System Seals Inc. acquired Plastoseal Produktions GmbH to enhance its global footprint and give it a presence in the fast-growing European seals market.

    Finally, Hubner GmbH & Co. K.G. is adding a second U.S. manufacturing site in Dunlap, Tenn., that is scheduled to be operational in the beginning of 2020. The site will span 36,000 square feet with employment at 15 initially. The site represents a $10 million investment. If targets are reached, the firm intends to double the size of the operation in a second phase, with employment also projected to reach 70 by 2024.

    Hubner
    Hubner’s extruded rubber seals are used in window systems for the transportation industry.

    Shedding weight

    In addition to the expansion, Hubner later in the year reached a deal to divest its automotive segment to Gotec Gorschluter GmbH, an automotive supplier based in Wuelfrath, Germany.

    The deal is projected to be complete on April 1. Hubner's automotive segment includes production of auto body parts, car key shells, keypads and accelerator pedals with sales in the "single-digit million range."

    Arsenal also divested a major business unit when it agreed to sell its Elite Comfort Solutions Inc. business to Leggett & Platt Inc. for about $1.25 billion. The deal is designed to enhance Leggett's presence in the specialty foam and hybrid boxed bed market.

    ECS produces proprietary polyurethane foam technology for the bedding and furniture industries. Based in Newnan, Ga., ECS operates 16 facilities throughout the U.S. with a work force of about 950, which will transfer with the business. The firm reported sales of about $611 million for the fiscal year ending Sept. 30, 2018.

    Boss-level deals

    AirBoss CEO P. Gren Schoch was named Rubber & Plastics News' 2019 Executive of the Year for good reason: The company made several major moves on its manufacturing side in 2019, including:

    • Created a new business, AirBoss Defense Group, through the merger of its defense business with Critical Solutions International Inc., a privately owned Charleston, S.C.-based global supplier of route clearance vehicles, countermine and survivability products to U.S. and foreign military forces;
    • Added new injection molding presses and replaced old ones at its production facilities in Auburn Hills, Mich., and also added another injection molding press for its defense business at its Acton Vale, Quebec, site to help with the operation's order backlog; and
    • Secured multiple defense contracts throughout the year.
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