April 18, 2013
Valtimet Inc., located in the Morristown Airport Industrial District, announced today the facility will undergo a $2.9 million expansion to be completed by the end of 2013.
The company is expected to break ground in May, and once complete, the expansion will increase the number of employees to a maximum of 105 at full production capacity, according to Executive Vice President Ron Dresen.
“The project will focus on consolidating operations and streamlining product manufacturing,” Dresen said. “The investments will allow for substantial improvements in product flow, improved communication, and reduced costs. This, plus Valtimet’s strong effort in research and development will enable Valtimet to expand its existing activity and capture new markets.”
The expansion is a direct result of a major strategic investment in 2009 to increase the overall finning capacity of hard alloys and titanium tubes at the Morristown plant and strengthening the Valtimet position as the worldwide leader for hard alloy finned tube products.
“We’re really excited about the expansion of another existing facility in Morristown,” said Marshall Ramsey, Morristown Area Chamber of Commerce president and CEO. “We realize the majority of our growth will come from existing industry. The Chamber will continue to support growth in Morristown and Hamblen County by all means possible. We would like to thank the city, county and state, along with Morristown Utility Systems for their support of Valtimet’s investment. We look forward to working with Valitmet in the futue as they contine to expand and grow.”
The consolidation of Valtimet operations will involve the closure of its facility located in Brunswick, Ga. Formerly High Performance Tubes, the plant was purchased by Valtimet in 2008. The two companies had worked together for many years prior to the sale, with the Morristown facility supplying HPT with its welded titanium and stainless steel tubes for heat exchangers.
Both prior to and after the purchase, the Brunswick plant added a mechanically formed fin to the tubes, a process that increased the surface area for heat exchange.
“That meant we put our material on a truck and shipped it to Georgia,” Dresen said. “Now the material that will be produced in Morristown will just go across a bay. By combining operations, we will will reduce lead time and improve quality, responsiveness and communication.”
The Brunswick facility currently operates two production shifts five days per week. All operations are planned to be moved progressively to the Morristown facility and no disruption of customer deliveries is expected.
In 2012, Valtimet moved its sales and customer service operations from New Jersey to Morristown, which now serves as the central support location for all North American operations.
With regard to the 2013 expansion, the 31 full time Brunswick employees have been notified of the consolidation and are being given the option of transferring to the expanding Morristown plant.
According to Dresen, the human resources department in Morristown is in the process of hiring in anticipation of the expansion.
“Every employee in Brunswick is being offered the opportunity to relocate. How many will accept is as yet unknown,” Dresen said.
The expansion is currently in the beginning stages, with some equipment being removed to open up space for the fin operations, according to Dresen.
Valtimet is part of the Power Generation Division of the Vallourec Group, and is the world leader of addressing both power generation and industrial markets. Valtimet has six operating locations and 670 employees worldwide.
Vallourec is a world leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications. With more than 23,000 employees, integrated manufacturing facilities, advanced research and development, and presence in more than 20 countries, Vallourec offers its customers innovative global solutions to meet the growing energy challenges of the 21st century.