First Manufacturing Facility of Its Kind Under Construction By CTA Acoustics

CTA's new Corbin, Ky. facility now under construction will be the most efficient and advanced facility built specifically to serve the auto industry's thermal and acoustical insulation market

CORBIN, Ky., April 29 -- CTA Acoustics is rebuilding after a plant explosion damaged two-thirds of its existing facility in February. The new plant in Corbin, Ky., now under construction, will be the first plant of its kind and the most advanced and efficient plant in the niche automotive thermal and acoustical insulation market. The company is projecting to begin operations out of the new facility by the end of the year.

The 340,000 sq.ft. manufacturing facility is being built on 47 acres of property in a new regional industrial park off the Kentucky 3041 Corbin bypass in Knox County. The facility will be home to approximately 600 CTA employees and will house material blending operations, matt lines and finished part production facilities.

"Walbridge Aldinger has worked closely with our people to design a plant that is more advanced and efficient than anything else in our industry," said James Pike, CTA Acoustics CEO. "It's really three plants in one and will allow us to be the most advanced, efficient, and most price competitive supplier in our industry."

The new facility represents an approximately $60 million investment in new technology and manufacturing facility safety. Mirror plants flank a central warehouse for raw and finished goods as well as support operations and offices for administration and operations.

Material blending operations will be located in a self-sufficient area of the plant. Material is then fed into the matting production line, which then supplies the molding and waterjet operations for final product. The center facility houses raw and finished goods and maintenance support operations.

CTA Acoustics' capacity to produce insulation material will increase by 300 percent over its current plant's peak capability. In addition, throughput for finished goods will increase by approximately 25 percent.

"We're more than doubling the amount of presses and waterjets that we had with the old facility," Pike added. "We're also putting state-of-the art computer controlled equipment in, which means exact tolerances for finished product. Our new quick-die change ability will add efficiencies that the industry has never seen before, allowing our product lines to keep up with the capacity of our material lines."

CTA Acoustics will close its current plant in Corbin, Ky. upon completion of the new manufacturing facility. CTA's current facility was more than two- thirds destroyed when a Feb. 20, 2003 explosion in the plant injured several workers and resulted in the deaths of seven employees.

"Six weeks ago, our company and community suffered a terrible blow," Pike said. "In the days and weeks that followed we've done everything possible to heal those who were impacted by this disaster. This new plant is part of the continuing healing process. It will provide a new home and a new basis for success by our employees."

Pike added that in the aftermath of the plant explosion more than 270 of the employees committed their own time to getting the plant up and running at the existing location and a temporary facility nearby.

"These employees showed unparalleled strength, courage and commitment. They are truly heroes and their efforts are an unbelievable success story in the face of adversity," Pike said. "Within three days of the incident, we were shipping our first parts to Ford Motor Company, Subaru and General Motors. We continue to make strides toward resuming full production. Upon completion, we'll dedicate this new facility to the employees of CTA Acoustics, past, present and future.

"We also couldn't have emerged from this disaster as a stronger, better company if it hadn't been for the support, commitment and assistance from our largest customer, Ford Motor Company," said Pike. "Ford's support in people, resources and commitment to current and future business made it possible for everyone involved to perform at the peak of human abilities."

CTA focuses on the research, design, engineering, manufacturing and integration of thermal and acoustical products for a variety of applications. These unique insulation products effectively manage noise and heat energy to make passenger cars, trucks, appliances, ventilation systems and other products quieter, more energy efficient, more comfortable and safer under demanding conditions.

Based in Madison Heights, Mich., CTA Acoustics is a privately held, full- service supplier of acoustical and thermal insulation products for the automotive industry and is the only company in its industry segment developing and producing its own materials for engine compartment, interior and industrial applications.