Southwire To Invest A Quarter Billion Dollars In Building Wire and MC Cable Capacity
Includes Purchase of State-of-the-Art Building Wire Plant in Florence, Alabama
(Carrollton, Georgia) - Southwire Company announced today it has signed an agreement to acquire the wire and cable assets of Essex Electrical Products, including its plant in Florence, Alabama, which manufacturers building wire used in residential, commercial and industrial construction. The deal is contingent upon approval by Alpine Group's shareholders and is expected to close near year-end.
This expansion, along with organic investment, will further increase Southwire's manufacturing capacity as well as strengthen its position as a leader in fill rates and lead times across its broad product offering. Overall, during the next fifteen months, Southwire plans to invest at least $250 million in new equipment and working capital related to building wire and MC cable.
"Today's announcement is further evidence of Southwire's commitment to making investments that support our position as the leader in our core wire and cable markets," said Southwire President and CEO Stuart Thorn. "The acquisition of Essex Electrical Products broadens the platform from which we serve our customers, allowing us to more efficiently provide the quality products and services they have come to expect from our company."
In addition to the Essex acquisition, Southwire is continuing to invest in its existing production operations - including drawing, stranding, extruding, jacketing, and armoring. These investments will be spread across all of Southwire's North American factories, including its new facility in Tecate, Mexico. Plans are also underway to establish a new plant in the west Georgia area by the end of 2006.
To support this increased manufacturing capacity, Southwire is expanding its copper rod mill in Carrollton, Georgia, which produces rod used in building wire and energy cable products. Additionally, the company is enlarging its master service centers in Indianapolis, Indiana and Ontario, California and is implementing additional cutting and paralleling capabilities. Construction is also underway to double the space at the company's master service center in Villa Rica, Georgia.
"These strategic moves position us for long-term growth," Thorn said. "We don't manage our business from quarter to quarter. We plan for the next generation, making sure we can grow with our customers well into the future."
In recent years, Southwire has made a number of significant investments. In 2001, the company purchased the building wire assets of General Cable, including plants in Kingman, Arizona and Watkinsville, Georgia. Last year, Southwire acquired Alflex, enabling it to offer the most complete line available of metal-clad (MC) cable and flexible conduit products. With this acquisition came two additional plants - one in Rocky Mount, North Carolina and the other in Long Beach, California.
"Through several key acquisitions and expansions in recent years, Southwire has built on its broad North American presence, with manufacturing plants and distribution centers strategically located across the continent," said Jack Carlson, president of Southwire's Electrical Division.
"Maintaining close ties with our customers allows us to remain sensitive to their needs," Carlson added. "We focus on helping improve their businesses. As they continue to grow, we must grow with them. In particular, the Essex acquisition, along with the other steps we have taken and plan to take, help us do just that. With its proximity to Southwire's headquarters in Carrollton, the Florence plant fits perfectly into the company's manufacturing and distribution network," Carlson said. Upgraded in recent years, the plant operates with nearly new equipment. Since June 2003, Essex has made substantial investments to upgrade and enhance the Florence facility, including the installation of new, state-of-the-art equipment along with upgraded machinery and an added 100,000 square feet of manufacturing space.
"As part of Southwire, Florence is positioned to become one of the most efficient building wire plants in the country," Carlson said. "Over the past 55 years, Southwire has established itself as a force in the wire and cable industry. This acquisition will build upon our reputation as the best choice for customers seeking a complete line of innovative, high-quality products with superior service capabilities from the industry's lowest cost provider."
About Southwire Company
A technology leader, Southwire Company is a major wire and cable provider in North America, manufacturing building wire and cable, metal-clad (MC) cable, cord products, utility cable products, industrial power cable, copper and aluminum rod and continuous casting technology. Please visit Southwire's website at mysouthwire.com.
Contact
Gary Leftwich
Southwire Company
(770) 832-4884
gary_leftwich@southwire.com
