HOUSTON – Perryman Co. on Monday announced a $40 million expansion of its titanium products capacity that it said could eventually add as many as 100 people to its workforce.
The Houston-based company said capital expenditures targeted for the project include new facilities and equipment at both its Houston and California production sites.
The project, which will be implemented in phases over the next two years, will double the company’s capacity to produce aerospace fastener stock material and bar products for medical and other markets.
After completion of the project, Perryman said in a press release it sees the potential to add an additional 100 jobs to its workforce.
“We are preparing for the future and want to have capacity in place well before it is needed,” said President and Chief Executive Officer Frank Perryman in a statement.
“Our current capacity is more than adequate for current demand levels as well as for the next several years; this initiative is aimed at demand peaking in the 2016-2018 time frame.”
He said the foundation for the investment centers on Perryman’s dedication and support of its two key markets – aerospace and medical.
“Demand for new, more efficient, commercial aircraft continues to grow at record rates. Production rates have been steadily increasing and our forecast models project a rising need for titanium fastener stock material,” Perryman said. “Our expansion is intended to support and align with our customer’s growing needs for Perryman material.”
The additional capacity will also serve to support Perryman’s expanding participation in the medical market including orthopedics, trauma, spinal and dental.
Last year, Perryman purchased the Pittsburgh operations of Accellent Inc., a high-quality forging supplier to the medical device industry.
Frank Perryman noted that the new Boeing 787 and Airbus A350 twin-aisle aircraft, which use composite materials, consume a higher number of titanium fasteners than earlier models.
“Increased aircraft production rates translate into higher demand for titanium fastener stock – a segment where Perryman is firmly established as a major supplier. Our decision to make this investment is in support of that demand,” Perryman said.
The company said it plans to incrementally add capacity in phases with everything to be fully operational in 2015.
“As with our current operations, the new expansions will incorporate the latest technology for titanium manufacturing.” Perryman said.
Founded in 1988, Perryman Co. is a fully integrated titanium producer from melting of ingot to finished products. Headquartered in Houston, it has offices in Philadelphia, Warsaw, Ind., Los Angeles, London, Zurich, Tokyo and Xi’an, China.