CTA Acoustics Makes $10 Million Investment in Kentucky

CORBIN, Ky., Aug. 16 -- CTA Acoustics, a leading supplier of thermal and acoustical insulation products to the industrial and automotive markets today announced the investment of more than $10 million in its 300,000 sq. ft. Corbin, Ky., manufacturing facility. The investment includes a multi- year upgrade of manufacturing technology at the plant to increase capacity and improve operations. Sales from the Corbin facility in 2002 will total approximately $100 million.

The technology investment includes the upgrading or addition of state-of- the-art pressing, forming, cutting and robotic technology. The investment will allow CTA Acoustics to increase its plant capacity without adding brick and mortar. In addition, the new technology will improve efficiency while maintaining the world-class quality that customers have come to expect from the company.

"We're making this investment now for the next automotive growth period," said James J. Pike, chairman and CEO of CTA Acoustics. "This is a significant investment for our company that will make our plant the model for the industry when we complete our work in 2003."

The investment is part of CTA Acoustics' growth strategy. In recent months, CTA Acoustics has appointed a new president and chief operating officer; a new chief financial officer; created the position of vice president of research and development and advanced manufacturing; and established a focused new product and manufacturing group.

Specifically, the company will add a total of four new major presses; six new robotic operated water-jet cells; and a new furnace for manufacturing acoustical and thermal management materials. The plant also is undergoing general improvements and a realignment of equipment for better efficiency.

"CTA Acoustics has a solid record of growth over the past several years," Pike said. "We're projecting our solid growth to continue. Instead of expanding to a new location or adding a new facility, we found it best to take advantage of the solid team and ideal location we already have in Corbin."

CTA Acoustics' role in Kentucky is a local success story. The plant in Corbin became part of CTA Acoustics in 1992 but had been part of the company's predecessor dating back to the early 1980s. While the plant supplies many customers across North America, some of its key customers are located in Kentucky, including Ford Motor Company's Louisville, Ky. truck plant.

The plant management and personnel are all natives of Kentucky and have helped grow the business, cementing CTA Acoustics as one of the largest, and most successful, employers in Eastern Kentucky. Though Pike is not a native of Kentucky, he is an alumnus and trustee of Lindsey Wilson College in Columbia, Ky. He also is chairman of WMI Inc., a Frankfurt, Ky.-based automotive supplier of seat frame and body stampings, which supplies Budd Company in Shelbyville, Ky., Dana Corp. in Elizabeth Town, Ky., and Johnson Controls in Georgetown, Ky. WMI is thriving in today's market after a turnaround in 1999 led by Pike.

CTA Acoustics' insulation products effectively manage noise and heat energy to make passenger cars, trucks, appliances, ventilation systems and other products quieter, more energy efficient and safer under demanding conditions.

CTA Acoustics is a privately held, full-service supplier of acoustical and thermal insulation products for the automotive and industrial markets. It operates a manufacturing facility in Corbin, Ky. and is headquartered in Madison Heights, Mich.