Union Grove, Wisconsin-American Roller Co will open a plant in Shanghai, China, in May, initially for its Plasma Coatings product line but also to target its traditional industrial converting customer base, including the tire, plastics, film, foil, packaging and steel industries, according to President Dan Cahalane.
The cost of the project wasn't released, nor the size of the plant and work force.
The factory is needed to serve a large group of U.S.-based customers with operations in China that have been requesting for several years the firm set up shop in the country.
American Roller's addition in Shanghai follows an expansion of the firm's Plasma Coatings operation in Houston in 2012. It added a 26,000-sq.-ft. (2415 sq m) facility and acquired SCS Machine and Fabricating, located a short distance from its operation, in November 2012.
"Not only do we apply plasma coatings on rollers used in the rubber and plastics industry, but these same coatings apply to parts found and used in the oil and gas segment," Cahalane said.
Adding SCS to the fold also strengthens the company's position in the oil and gas industry, and gives it additional machining and fabricating capabilities, he said.
He said the company is less than one year into its expansion but the results are exceeding its expectations "and we are ready to keep the peddle down via our expansion into China."
American Roller isn't finished expanding. "In both our roller and coating product lines, we see opportunity for global expansion and consolidation in the U.S.," the executive said.
The company will continue to pursue those activities but-like its organic growth initiatives-will only go after them when the acquisitions fit and they represent a fair price, he said.
"We are always looking to acquire companies that fit our strategy and culture of engineered solutions, driven by collaboration with the customer," Cahalane said.
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