Friday, August 31, 2012

News: AESSEAL invest in US operation


Leading Rotherham manufacturer, AESSEAL, is investing $3.3m (£2m) in a new expansion to its North American headquarters in Tennessee.

The world's fourth largest mechanical seal business has had a US operation for 20 years and has now committed to a 15,000 sq ft addition to their facility in Rockford.

With their global headquarters at Templeborough, award-winning AESSEAL manufactures mechanical seals, which are environmental containment products used on all types of rotating equipment in process industries.

Tom Grove, executive vice president at AESSEAL brought the business to a rented office suite in Knoxville in 1992; there are now 60 employees in East Tennessee and eight subsidiary and branch locations in the United States and Canada.

The $50m North American business comprises approximately 20 percent of AES's global business which now includes 230 locations in 104 countries, with nine manufacturing locations and 58 full-service repair locations.

Tom Grove said: "This development brings production machining of our core products to Blount County. We will install a 9-axis state-of-the-art Mori-Seiki machining center, which will be capable of machining any of our product components.

"In the past, our complex machining has been concentrated at one of four manufacturing locations at our parent company in the United Kingdom. Adding 9-axis machining will position us to serve the oil and gas high-end of our market."

Chris Rea, group managing director at AESSEAL, added: "We have a great number of people who have made a huge contribution to the substantial business that we have in the US. I sincerely believe the decision to manufacture in Blount County will be a catalyst for accelerated growth in the country."

In its annual results to 31 December 2011, the company reported that sales were up 19.5% to £123.9m and EBITDA (earnings before tax) was £22.8m, up 22.9%.

AESSEAL, which is backed by international investors, 3i, enjoyed a rise in operating profit to £18.2m.

90% of sales are from outside of the UK, with sales to North America and emerging markets contributing strongly to sales growth in 2011.

AESSEAL website



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