Houston-based Quanex Building Products Corp., a supplier to original equipment manufacturers, will add 10 extrusion lines at its Kent, Wash., facility to improve operations and meet increased demand for its Mikron-brand vinyl window and door profiles.
The manufacturing lines will be sourced from Extrunet GmbH, an Austrian extrusion technology company, and should be fully operational by early 2020. When completed, the facility will be one of the most advanced extrusion operations in North America, according to Quanex officials.
"We're making this investment because we fully believe in Mikron and its continued success," Bob Daniels, Quanex's president of North American fenestration, said in a news release. "By driving new efficiency in our manufacturing capabilities, our customers will experience the benefits firsthand in the form of improved production stability and overall customer experience."
An increasing number of OEMs are outsourcing production of components because of labor and capacity constraints as well as the weak payback on capital for manufacturing the parts, according to Quanex's September 2019 investor presentation.
The company says it is experiencing above-market sales growth in North America and Europe. Outsourcing lets OEMs focus their employees and capital on product and system assembly, which is their core competency, the presentation says.
The additional extrusion lines in Kent will be fully digitized to give production teams new insight into data and analytics to maintain manufacturing efficiencies as they meet component demand, according to Quanex.
In addition to vinyl profiles, the company produces insulating glass spacers, screens and other window components as well as cabinet components, such as face plates, fronts and doors.
With an estimated $240 million in profile sales, Quanex ranks No. 19 among North American pipe, profile and tubing extruders, according to Plastics News' latest ranking.
Overall, Quanex posted a profit of $26.3 million on sales of $889.8 million for the fiscal year that ended Oct. 31, 2018. Through the third quarter of this fiscal year, sales reached $897.6 million with adjusted net profit at $25.2 million.
Quanex has 34 locations employing 4,000.