Uponor expands in North America to meet growing demand

Uponor Corporation                 Stock exchange release                     23 April 2013  14.00 EET
 

Uponor expands in North America to meet growing demand

Uponor’s US subsidiary will invest in new capacity at the Apple Valley facility in Minnesota, USA, adding some 1,600 square metres of mostly manufacturing space in connection to its existing premises. The construction will start in May, and the extension is expected to be operational by year-end 2013.

The investment will increase Uponor’s capital expenditure by some €12 million, causing the total consolidated capital expenditure to clearly exceed depreciation in 2013.

This will be the fifth expansion for the 1990-built facility, which houses Uponor’s North American offices, manufacturing and Uponor Academy, the onsite training centre. It represents an increase of close to 15% in manufacturing capacity.

Over the past several quarters, Uponor has been adding new capacity by installing idle manufacturing lines from the closed Canadian factory. However, the capacity will not be enough to meet the anticipated growth in demand for cross-linked polyethylene (PEX) pipe for the company’s applications, such as plumbing, fire sprinkler and radiant heating and cooling systems.

Uponor’s North American manufacturing capacity is already exceeding the level that it had before the financial crisis started in 2007.

“During the crisis, we were able to extend our business to the commercial market, which has remarkably alleviated the drop of demand for our systems. Now that the US residential building market is recovering, we expect demand to pick up further in step with reviving residential demand,” says Uponor’s President and CEO Jyri Luomakoski.

“We project a continued growth of our business in the commercial and residential markets. This expansion should ensure that we have a platform to meet customer demand at least for the next couple of years, provided the economy stays on track.”

Recently, Uponor Inc. was awarded the 2013 Manufacturer of the Year award from the Minnesota Manufacturers Alliance, recognising the company’s lean manufacturing operations and processes.

Pictures available through the following link (until 7 May 2013):
http://umib.uponor.com/?cart=2359-gheihelflc&l=EN

 

For further information, please contact:
Jyri Luomakoski, President and CEO, tel. +358 40 515 4498
Riitta Palomäki, CFO, tel. +358 20 129 2822

 

Uponor Corporation
Tarmo Anttila
Vice President, Communications
Tel. +358 20 129 2852
 
 

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www.uponor.com
 

 
Uponor is a leading international provider of plumbing and indoor climate solutions for residential and commercial building markets across Europe and North America. In Northern Europe, Uponor is also a prominent supplier of infrastructure pipe systems. The Group employs approx. 3,000 persons, in 30 countries. In 2012, Uponor's net sales exceeded €810 million. Uponor Corporation is listed on NASDAQ OMX Helsinki in Finland. http://www.uponor.com.