Kolbenschmidt Pierburg Plans Fountain Inn Expansion

Kolbenschmidt Pierburg Inc. and KS Bearings (USA, divisions of Rhinemetall AG) revealed plans for aggressive expansion and production at their facilities in Fountain Inn, South Carolina. Built in 1996 at 50,000 square feet, Fountain Inn was expanded in 2000 to 90,000 square feet. KS Bearings moved most of its operations from Greensburg, Indiana to Fountain Inn in 2002. Now, the adjoining Pierburg and KS Bearings plants will be expanded once again, and production equipment added. The additional investment will total more than USD $20 million by 2010. Altogether, Kolbenschmidt Pierburg will have invested will over $80 million at Fountain Inn. Employment at the joint facilities will also increase, from the current 175 to almost 300 by the time the first phase of the expansion is online. Approximately a quarter of the new jobs created will be skilled engineering positions, with the others going to production workers. Fountain Inn is a nonunion facility. The plant expansions will allow Kolbenschmidt -- the company's fastest-growing division -- to meet fast-growing demand for the advanced auto and truck engine exhaust gas recirculation valves and throttle control systems produced at Fountain Inn. Similarly, it will allow KS Bearings to expand production of Permaglide™ bearing products and applications. Kolbenschmidt Pierburg is a major tier one automotive supplier, with more than $300 million in sales across North America alone; overall corporate-wide sales are $2.4 billion. But North American sales are expected to continue to pace the company, reaching $500 million by 2008 based on contracts in hand. Andy Knackstedt, Pierburg President, said, "We have expanded our resources to fuel and support our North American growth, and it has paid off. We have booked more than $50 million of new business this year. That's the highest rate of new business booked since the foundation of Pierburg in the U.S. in 1996." KS Bearings North America, headquartered in Fountain Inn, produces bearings, thrust washers, and small-end bushings for automotive and heavy-duty truck engines The division is targeting North American OEM automotive applications and expanding its engine bearing product line. The company also produces metallic transmission bushings and washers. David Mosier, President of KS Bearings, said, "We're also very encouraged by the interest in our Permaglide product. Permaglide is finding its way into areas that previously were unsuitable -- for example, inside an internal combustion engine. We're currently using Permaglide on the rocker arms and camshaft of a high-performance V-8 for a major manufacturer. By removing parasitic friction losses, it improves the overall efficiency of the engine." Permaglide coatings are also gaining market share with door hinge and shock absorber applications. "We have the manufacturing capability to meet our customers' needs for multiple shapes and sizes and any geometry," Mr. Mosier said. Founded in 1928, Pierburg manufactured only carburetors until the late 1980's when it became involved in fuel injection and related components -- manifolds, air pumps, exhaust gas valves, and similar components. However, as a controlled subsidiary of Bosch, it had long developed and had access to advanced fuel injection technology products. With the split from Bosch, Pierburg partnered with Siemens to move into fuel injection systems directly as a tier one supplier. In all, parent Kolbenschmidt Pierburg AG has four operations in North America, with production facilities in Fountain Inn; Greensburg, Indiana (bearing strip); Fort Wayne, Indiana (pistons); Marinette, Wisconsin (pistons), and Leamington, Ontario, Canada (pistons). Its North American sales offices, for the OEM auto and truck industry, are in Southfield, Michigan.