Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, announced a new rolls and mechanical services facility located in Çorlu, Turkey. The facility is under construction and the equipment is already on hand. It will be state-of-the art and is expected to be in production Q1 2015. From this geographic location, Xerium will provide its full suite of patented performance-enhancing roll solutions to customers in the surrounding region. Xerium will perform roll grinding, roll recovering and mechanical services on site. Xerium is also increasing its field sales and service staff for the region for machine clothing, roll services, mechanical services and machine automation through its SMART® Roll sensor solutions.
Dave Pretty, Xerium's President of North America and Europe, and Recep Agci, of Modern Karton, Istanbul were instrumental in making this new greenfield plant a reality.
Xerium's facility will be the first major rolls and service facility established in Turkey, by any of the industry's major global suppliers. From this location, Xerium will be able to provide regional customers with dramatically quicker and more cost effective service. Importantly, these products and services will be delivered through a local workforce familiar and respectful of local customs. The plant will be co-located on the grounds of Modern Karton, one of the largest and most integrated producers in the region. The required investment and startup costs of this new plant are included within the company's previous guidance for spending in 2014.
"Xerium is honored to be the first major global competitor to build a plant in the region and proud of its relationship with Eren Holding and Modern Karton. We look forward to delivering superior mechanical services, roll covering capabilities, and machine automation services to the region," said Harold Bevis, Xerium's President and CEO. "This area of Europe is healthy and growing in the industries we serve. We believe this commitment will bring value to the area for all three of Xerium's product categories -- roll coverings, mechanical services and machine clothing.
"Xerium is repositioning its business for the future by executing its dual-pronged long term strategy of achieving Commercial Success and Cost Leadership," continued Mr. Bevis. "Commercial Success is about being #1 or #2 in each of its markets and being at least on par with the marketshare leaders in each category. Xerium is committed to growing with the market leading customers globally. Currently, we have 27 specific growth initiatives to implement this strategy and this new plant in Turkey is one of those initiatives. The company's goal is to target specific customers and specific machines where the company's value-added offerings are a natural fit."
Commenting on Cost Leadership, Mr. Bevis said "Xerium is equally committed to achieving Cost Leadership in its operational structure. Continuous improvement and increased value are a given in the industries the company serves and it is imperative that the company be set up correctly to deliver against that expectation. The company has 9 specific programs to achieve this objective. Cost Leadership is more than just closing old, high-cost plants with old equipment that are in awkward predicaments given forward expectations. It is more than just 'cost out.' We are also making sure that we have the right set-up to deliver best value and continuous improvement.
"Xerium's decision to build a greenfield rolls and mechanical service plant in Turkey is a manifestation of both elements of the company's long-term strategy - Commercial Success and Cost Leadership." said Bevis. "Xerium is excited and honored to commit its money, time, people, patents, and 202 years of global trade secrets to help customers in Turkey and Southeast Europe win in their markets."