The facility will include a proprietary manufacturing process and when fully operational the facility would have an annual sales capacity of up to $75 million. The manufacturing capabilities provided by this investment will allow the business to effectively compete in a broad range of product applications utilized in the national transportation market.
This strategic initiative focuses on the national transportation infrastructure market for applications, such as highway lighting, traffic signal control structures, light rail, high mast and smart grid structures, and highway signage. These are large national markets that generally benefit from federal and state funding and that are forecasted to experience long-term, steady growth to support the necessary expansion and upgrade of the U.S. transportation system. The broad steel pole product line would complement the Company's market-leading line of decorative concrete lighting poles used in commercial and residential markets. In addition, it is expected that offering a full steel pole and concrete pole line would provide synergies throughout the distribution network.
James S. Marlen, Ameron's Chairman, President and Chief Executive Officer, stated, "This investment represents a significant strategic growth opportunity in a market with which we have experience. With the new plant, we will have a cost-efficient, state-of-the-art manufacturing process and the capacity to grow the business."
Source: Ameron International