Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, announced plans to establish a new roll cover and mechanical services facility located in Concepción, Chile. The Company is continuing to reposition assets from low-growth to high-growth markets. This new project is very capital efficient in that the Company already owns the majority of the equipment that will be installed in the new Concepción plant. The remaining spend will cross 2 calendar years and is already included in the capex guidance previously given by the Company.
Xerium's facility will be the first major rolls and service facility established in Concepción, Chile, 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 facility will be state-of-the art and is expected to be fully in production Q2 2017. From this strategic 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.
The facility will contain state-of-the-art rolls and service machines. Xerium will transfer all of its best practices and all of its global patented technology solutions to the region. The plant will also have state-of-the-art information systems and supply chain interfaces. This new facility will serve customers in Chile, Peru, Ecuador and Colombia.
This new operation will be under the regional direction of Mr. Eduardo Fracasso, President of Latin America. The Concepción, Chile greenfield implementation will be led by Luis Vitti; Project Manager. Luis has been with Xerium for 32+ years and brings significant leadership and customer focused expertise to this role.
Harold Bevis, President and CEO of Xerium Technologies, Inc., said, “For the first time ever, customers in the immediate Chilean region will receive locally provided & locally optimized state-of-the-art rubber extrusion technology. The Chile plant will be able to service large rolls from any industry or application.”
Mr. Bevis continued, “The commercial objective is to provide machine optimization solutions with world-class technology, short lead times, and a local cost structure. The customers in the region deserve this world-class approach and we are proud to provide it. Customers will immediately receive better lead times, better technology, better service and better costs. This new business start-up is part of Xerium’s investment strategy to realign its global business model and global factory locations to line up with growth markets in the world.”
ABOUT XERIUM
Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 26 manufacturing facilities in 13 countries around the world, Xerium has approximately 2,900 employees.
Source: Xerium Technologies, Inc.