Haynes International Inc. Board of Directors approve a new $61 million capital expenditure growth plan to expand capacity for the Company's tubular products and flat products in response to anticipated customer demand in the growing aerospace, land-based gas turbine and chemical processing industries.
The company plans to invest approximately $37 million to expand by an estimated 60% the specialty titanium and high-performance nickel alloy tubular production capacity of its Arcadia, LA, facility. In addition, the company plans to invest approximately $24 million to expand by an estimated 20% its capacity to produce specialty high-performance alloy flat products at the company's Kokomo, Indiana facility. The company has commenced initial planning and design and expects to complete both projects within the next two years, with benefits from the tubular project expected to emerge in 12 to 15 months and benefits from the Kokomo project expected to emerge in nine to 12 months.
"The capital investments in Arcadia and Kokomo should improve our ability to service our customers' increasing demand for specialty products and also continue to improve product quality and operating efficiencies," states Mark Comerford, president and chief executive officer. "The company expects to finance these projects and the projects described in the company's most recent Form 10-K with cash from operations and from cash on the company's balance sheet. The actions we have taken in the previous five years have contributed to the company's improved capital structure and liquidity position and make it possible for the company to continue to grow and add capacity to meet expected market demand without adding debt or issuing equity.
Finally, Haynes is also very appreciative of the support of the local communities and government agencies in Louisiana and Indiana who have committed to provide certain tax credits and incentives to assist the Company's expansion."