Plant Turnaround Sees Double-Digit Growth
This Sapa Extrusions aluminum processing plant credits its growth to new plant management and increased aluminum demand.
A hot topic in business news today is the boost in U.S. manufacturing jobs – a trend that is seen first-hand at the Mountain Top, PA aluminum processing plant of Sapa Extrusions North America.
The plant achieved a turnaround and has seen double-digit growth in production over the last year, success that it credits to two recent developments:
1) New Plant Management – In 2012, Sapa installed a new management team to develop a strategic commercial, investment and manufacturing plan centered around the growing demand for aluminum extrusion in fast-growing industries like solar energy and automotive.
This program – which included plant improvements in safety, quality and operations – led to worker re-training, new capital investments and a commercial alignment with Sapa’s key suppliers. As a result, the Mountain Top plant has seen double-digit growth in just one year, leading to new revenue streams and many new jobs.
2) Increased Aluminum Demand – Automakers’ growing use of aluminum to build more energy-efficient cars is the driving force behind much of the Mountain Top facility’s record hiring and production in 2012. Federal regulations requiring better fuel efficiency have increased automakers’ demand for aluminum, which is lighter than steel and decreases the weight of the vehicle, a trend known as lightweighting.
This switch from steel to aluminum has been adopted by major automakers over the last year. With vehicle production expected to grow in 2013, Sapa is gearing up to meet increasing demand from the automotive market.