Geon Performance Solutions announced this week that it is making significant investments in its North American capacity and innovation capabilities. The expansion is already underway at the company’s facility in Dyersburg, TN, with a new wire and cable flexible line slated for operation at full capacity by the end of this month.
The company is also converting one of its existing compounding lines in Dyersburg to PVC compounding, which is expected to be operational by year-end. These expansions represent a significant diversification of compounding capabilities, said Geon in the announcement. 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 because of its dependency on automotive production. This expansion should diversify the markets served and help to mitigate future impacts of market slowdowns, said Geon.
These two lines represent an additional 120 million pounds in capacity investment and will further strengthen the company’s PVC compounding capabilities.
“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,” said CEO Tracy Garrison in a prepared statement. “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.”
The announcement comes at a time when the petrochemical industry is suffering from raw material shortages caused by winter storms on the Gulf Coast. Geon operates multiple facilities across the country, and this new investment will allow it to deliver greater reliability and options for production, said the company.
“We continue to proactively serve our customers by anticipating needs and studying market trends,” said 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 said it has unlocked more than 20 million pounds of additional annualized capacity using Lean Six Sigma methodology.