Xerium Technologies today announced plans to build a new, high-end press felt plant near Shanghai, China.
According to Xerium, the greenfield plant will employ the industry's most advanced press felt manufacturing technology capable of supplying the highest quality products for the most demanding machines in the region.
Production at the new plant is expected to begin by the first quarter of 2015 .
Xerium’s decision to build a new machine clothing plant in China is based upon several important business reasons. The company’s sales in Asia are growing differentially higher than in other parts of the world and 3rd party market estimates are for these consumption rates to continue for a long time.
There is strong customer preference for the company’s high-end press felt products in Asia, especially in tissue. Currently, the company supplies products to the region from 21 of its global plants.
Xerium is committed to reducing its overall cost structure by repositioning its manufacturing footprint in low cost countries. Xerium is already expanding its current operations in Mexico, Brazil and China. This investment will be another step forward in that direction and the building plant site is being designed to accommodate future expansions to further lower Xerium’s cost structure materially.
"This new facility will immediately become our lowest cost plant and strengthen our global manufacturing base”, Xerium saic in a written statement.
