MOSCOW (MRC) -- GEON Performance Solutions is making significant investments in additional, new, state-of-the-art equipment to enhance its North America capacity and innovation capabilities, said the company.
The expansion is already underway at the company’s facility in Dyersburg, Tennessee with a new wire and cable flexible line slated for operation at full capacity by the end of July. GEON will also convert one of its existing compounding lines in Dyersburg to PVC compounding. It is expected that the conversion will be operational by year-end. These expansions represent a significant diversification of GEON’s compounding capabilities. The Dyersburg facility manages contract-tolling services for many Fortune 50 companies and polypropylene production for the automotive industry. During the pandemic, it was idled for an extended period due to its dependency on automotive production. This expansion should diversify the markets served and help to mitigate future impacts of market slowdowns.
These two lines represent an additional 120M lbs. in capacity investment and will further strengthen the company’s PVC compounding capabilities. GEON continues to bring value-added process technology to customers, enabling them to differentiate their products in automotive, wire & cable and building & construction applications.
“This represents another major step forward for GEON as an innovation leader in the industry and is an integral part of our strategic plan for the company,” says Tracy Garrison, Chief Executive Officer of GEON. “This capital investment in capacity and technology will expand our innovation capabilities across our PVC, polypropylene and plasticizer businesses, and provide us the ability to grow with best in class assets."
This announcement comes at a time when the petrochemical industry is suffering from raw material shortages due to winter storm URI that caused electricity outages and plant shutdowns on the gulf coast. GEON, having multiple facilities across the country, helped customers to navigate their supply issues. This new investment will allow GEON to deliver even greater reliability and options for production.
"We continue to proactively serve our customers by anticipating needs and studying market trends,” says Garrison. “Our investments reflect our growth as a company and further demonstrate our commitment to our customers and innovation." In addition to these investments, GEON has unlocked over 20M lbs. of additional annualized capacity utilizing Lean Six Sigman methodology (LSS).
Earlier it was reported that the production of polyvinyl chloride (PVC) in the US and Canada in June significantly exceeded the average for the past five years, as domestic sales rose sharply. PVC production in the United States was halted due to February frosts along the Gulf Coast of Texas and Louisiana when they were forced to turn off their electricity.
According to the ICIS-MRC Price Report, the Russian PVC market remains unchanged, a serious shortage of resin remains, and prices have reached another record high. By Monday, the Bashkir Soda Company and Sayanskkhimplast stopped their production for routine maintenance.
GEON Performance Solutions is a global leader in the formulation, development and manufacture of performance polymer solutions. With a portfolio of highly adaptable vinyl and polyolefin polymer technologies as well as a full-service manufacturing business, GEON combines three powerful traditions into a single, customer-focused business. GEON Performance Solutions is a leading innovator in the development of performance material solutions for a broad range of markets including appliances, building & construction, electronics, healthcare, transportation, wire & cable and more. GEON Performance Solutions has 1,100 global associates and 10 world-class manufacturing plants with headquarters in a western suburb of Cleveland, Ohio. Visit geon.com to learn more. GEON Performance Solutions is a portfolio company of SK Capital Partners.