Koch Membrane Systems Inc. (KMS) announced the centralization of its Puron product manufacturing at the company’s headquarters in Wilmington, Mass., where it develops and manufactures its membrane products. The consolidation will result in significant expansion of the company’s existing production capacity in Wilmington.
“The demand for these products is growing at double-digit rates,” said Mark Farrell, vice president of global membrane manufacturing and systems engineering. “Our Wilmington campus was the natural location to add the capacity we needed. We own the campus and have an excellent relationship with the town of Wilmington, where we have been located for almost 40 years.”
He added, “co-locating with our other membrane manufacturing lines allows us to take advantage of economies of scale with respect to raw material handling, logistics, and quality assurance.”
As an outgrowth of this consolidation effort, KMS has announced the start of a consultation process between its subsidiary, Koch Membrane Systems GmbH, and its Works Council on a proposal to close its Aachen manufacturing site.
“We have increased capacity at the Aachen factory in the past, but the size and layout limitations of the facility we lease there do not lend themselves to further expansion or to the implementation of additional lean manufacturing practices,” Farrell saod “Ultimately, it simply makes more sense to invest in a property we own as opposed to one we rent.”
Because KMS already manufactures some of its Puron product in Wilmington and is in the process of expanding its capacity there, there will be no impact on its ability to meet current and future orders if the Aachen manufacturing facility is closed at the conclusion of the consultation process.
Source: Koch Membrane Systems
