Uponor North America, part of the Building Solutions – North America segment, has signed an agreement to acquire a manufacturing facility and real estate in the U.S. town of Hutchinson, Minnesota.
Forecasting continued long-term growth in commercial and residential construction, Uponor plans to acquire the 22,000 square metre (237,000 square foot) facility to expand its PEX pipe manufacturing operations. After 10 expansions in 26 years, including the latest addition announced on 4 May 2017, Uponor’s current premises in Apple Valley, Minnesota have reached the limits available for growth.
”We have witnessed weaker than anticipated net sales development in Building Solutions – North America in the first half of the year, which has partly been caused by our inability to meet customer demand for our products. The new facility in Hutchinson will allow Uponor to increase production capacity, pending regulatory approvals, in time to satisfy expected growth in demand in 2019,” says Jyri Luomakoski, President and CEO at Uponor Corporation.
Roughly 100 km (less than 70 miles) west of the current Apple Valley premises, Hutchinson – sometimes referred to as “Minnesota’s manufacturing city” – is an attractive location as it provides access to a large pool of manufacturing talent and remains close enough to the company’s existing operations to enable the use of shared services.
The deal, which is worth €5.6 million ($6.3 million), is expected to close by end of August 2017.