Freudenberg-NOK Launches Focused-Factory Strategy in New Hampshire
20 May 1999
Freudenberg-NOK Launches Focused-Factory Strategy in New Hampshire with Ashland, Northfield Production Ramp Up and Building of Two New Facilities
ASHLAND, N.H., May 20 -- Freudenberg-NOK's focused-factory
strategy in New Hampshire is hitting high gear, as the company plans to build
new plants in Franklin and Laconia, and ramps up production at its Ashland and
Northfield facilities.
"We have a number of exciting activities taking place in New Hampshire in
the next several months as part of our goal to realign our facilities into
focused factories and to further grow our business in the Bristol area," said
Joseph C. Day, president and CEO, Freudenberg-NOK.
"We are taking business to the next level by making significant
investments, adding more value for our customers and strengthening our
commitment to our employees -- by ensuring the long-term viability of the
business and by providing our associates with the opportunity to work in
modern, highly efficient facilities," he said. "After our New Hampshire
efforts are complete, we will have five dedicated seal plants and a tooling
technology center here, further enhancing our global competitiveness."
According to Day, Freudenberg-NOK recently completed deals to build two
new facilities in Franklin and Laconia. These facilities -- which will
produce bearing seals and shock, strut and steering seals, respectively --
will help to cut product development time, simplify production, reduce plant
complexity and provide customers with quality, cost-competitive, value-added
products. Freudenberg-NOK plans to open the facilities in early 2000.
Equipment and employees will be transferred from the company's Bristol plant.
With Freudenberg-NOK's Ashland Small-Lot Focused Factory in full
production this week, the company's focused-factory initiative is well
underway. Producing low-volume radial shaft seals (less than 100,000 units
each) for the automotive and general industry segments, this focused factory
freed-up floor space at the 279,000-square-foot Bristol plant -- enabling it
to become dedicated to component manufacturing and to accommodate future
growth.
Further contributing to the Bristol area's economy and creating new
business potential, Freudenberg-NOK will continue its focused-factory
initiative in early June with the opening of its new Northfield Axle Seal
focused factory, which is ramping up for production.
Freudenberg-NOK broke ground in September of last year for the Northfield
Axle Seal facility -- which is located adjacent to the company's Tooling &
Technology Center. The new plant is dedicated to providing highly engineered
axle seals for a variety of customers in the sport-utility, light-truck and
heavy-truck markets.
"Focused factories -- which are dedicated to specific processes and
products -- give Freudenberg-NOK the ability to be more responsive to
customers and to concentrate on speed to market, while further solidifying our
approach to standardizing products, processes and materials that are
completely interchangeable anywhere in the world," Day said. "These five
dedicated focused factories in New Hampshire will ultimately allow us to
achieve these objectives."
With facilities in Ashland, Bristol, Franklin, Laconia, Manchester and
Northfield, Freudenberg-NOK will continue to be ranked as one of the largest
employers in the state.
The Ashland site was originally opened in 1980 as a Freudenberg-NOK
tooling shop and, most recently, was utilized as a warehouse for raw materials
to support the Bristol plant. The facility, which still supports activities
at the Bristol plant, has invested $3.1 million in renovations and new
equipment and expects annual sales to grow from $9 million in its first year
to approximately $14 million by 2002.
In addition to manufacturing products for Freudenberg-NOK's Aftermarket
Division, the Ashland facility has a number of customers including Eaton
Corp., General Motors Corp., Mercury Marine, OMC, Parker Hannifin Corp.,
Sensus Technologies Inc., Timken Bearing Corp., the Torrington Co. and TRW
Commercial Steering.
Plymouth, Mich.-based Freudenberg-NOK is part of the Freudenberg and NOK
Group Companies, which have total annual sales of more than $6 billion. With
global automotive sales of approximately $3.5 billion, the Freudenberg and NOK
Group ranks among the world's top 25 independent automotive suppliers.
Through a global network of facilities spanning 24 countries with some
23,000 automotive employees worldwide, the supplier group offers its
automotive customers globally integrated products, including total sealing
packages for transmissions, engines, brakes and steering, NVH (noise,
vibration and harshness) components and packages, and all rubber, plastic and
PTFE components for suspension, electrical and fuel systems.
The Freudenberg and NOK Group also offers an extensive portfolio of
precision-molded products for the aerospace, appliance, business machine,
fluid power, marine, medical, off-highway equipment and recreational vehicle
markets. For more information, visit the Freudenberg-NOK web site at
http://www.freudenberg-nok.com.