Sales: $75 Million
Description: Key Personnel
Peter Longo, chairman and COO, Scott Tesser, president and CEO; Rich Noble, CFO and treasurer; Dan Kamat, vice president, Industrial Textile Division; Shaile Dusaj, director industrial marketing and sales; Keith Martin, industrial business manager; Gunther Hoffman, marketing director automotive division.
Needlepunch, thermal bonded, chemical bonded, heat activated adhesive coatings, specialty finishes
ISO 9001: 2000 (March 2001)
Apparel interlinings, automotive fabrics, medical, fabric softener substrates, furniture and bedding, filtration, vinyl substrates, home furnishings, wipes, hygiene, footwear
Industrial application growth continues to bode well for Precision Custom Coatings, Totowa, NJ. In 2005, the division represented 30% of the company’s $75 million sales compared to 17% last year, thanks largely to growth in bedding, filtration and automotive products.
Helping to boost its industrial business is the acquisition of needlepunch manufacturer Globetec Incorporated, North East, MD, in December 2006. In March, PCC announced it would add a second needlepunch line to this facility, more than doubling the site’s production capacity. The new line is able to make needlepunched material in widths up to 180 inches and in weights ranging from two to 50 ounces per square yard. The line can produce dual-layered fiber blends and can incorporate structural scrims on the exterior or even between the layered fabric. Applications include air and liquid filtration media, wipes and pipe liners.
Meanwhile, in PCC’s NJ headquarters, a composite line combining the benefits of thermal bonding, highloft and chemical bond capabilities, is producing a heavy weight, uniform fabric suitable for a number of industrial markets. “Composite materials are what have been creating new markets for years,” said PCC COO Peter Longo. “When you are able to do many things with one fabric, you can really go into a lot of new businesses.”
One key area is furniture and bedding where flame retardancy has become a major concern due mainly to recent national legislation regulating the flammability of mattress materials. To target this area, PCC has developed fiber-inherent systems that perform well at price points that are appealing to the market. While this market is a new one for PCC, executives expect sales here to reach $10 million by next year.
Also targeting this market is a new line of mattress protection fabrics that add properties such has waterproofing and fluid proofing to the mattress and are sold separately from the mattress at retail.
“Commodities are not a business area we pursue because it would be hard for us to chase some of the bigger companies,” Mr. Longo said. “Mostly we look for areas where we can add value and where customers can benefit from our ability to create products, start to finish, under one roof.”
Meanwhile, PCC’s apparel interlining business, which continues to represent the bulk of its business has been challenged by this market’s transgression into Asia. And, while the company has been able to maintain a strong foothold on this business in the U.S., it recently took up a Chinese partner to strengthen its business in the region. In June, PCC formed a joint venture agreement with Ningbo Yigua Textile Factory, an Asian textile manufacturer, which will expand its apparel interlining production capabilities, enhance its product line and augment its ability to offer localized relationships with apparel manufacturers throughout Asia. Operations for the new joint venture are being conducted from a PCC Ningbo Textile Co., Ltd.-dedicated facility in Ningbo, China.
“We were already able to beef up our apparel business in China,” said president and CEO Scott Tesser. “But as our industrial unit grows, we have less capacity here for apparel. We thought this would be a good way to control our own manufacturing in China.”
PCC has already operated a joint venture agreement in Jiangshu for coating applications.