Industry Headlines / NDT

Thermon Opens Manufacturing Facility in San Marcos, TX

SAN MARCOS, TX-In April, Thermon Group Holdings, Inc. (NYSE:THR) ("Thermon"), opened a new manufacturing building at its primary production facility in San Marcos, TX. The expansion was completed over the course of one year at an approximate cost of $5.5 million.

The new manufacturing building has approximately 48,000 square feet of floor space, including offices. In addition to purchasing new manufacturing equipment, Thermon has moved certain of its existing manufacturing lines to the new building, which it believes will create efficiencies in the cable production process. The new manufacturing building will enable Thermon to approximately double production capacity for its low temperature cables, as well as increase its high temperature cable production capacity by approximately 30%.

Management currently estimates that the facility expansion, when operating at full capacity, would support revenue levels of up to $400 to $500 million. This should satisfy Thermon's core cable growth needs for the next several years (assuming current trends in product mix).

"This investment will significantly increase our overall production capacity for high and low temperature cable and simultaneously streamline certain of our existing manufacturing processes. It will enable us to respond faster and more efficiently to the growing demands of the industrial electric heat tracing market, as well as pursue growth opportunities in adjacent markets," says Rodney Bingham, president and CEO.

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