AZZ Inc. ( NYSE: AZZ ) unveiled plans Friday to build a new aluminum coil coating facility near St. Louis, Mo., which is expected to add more than 120M lbs/year its North American coatings production capacity.
The company said its AZZ Precoat Metals unit will operate a network of 14 facilities including 16 coating lines and 19 value-added processing lines upon completion of the plant, which is expected by 2025.
AZZ said it has secured long-term contractual customer commitments for more than 75% of the new capacity, and that it expects sales of at least $60M from the plant by 2026.
The new plant was "contemplated in our strategic rationale for acquiring Precoat Metals earlier this year and is a key element of our growth roadmap for the coil coating segment," CEO Tom Ferguson said, referring to the $1.28B acquisition of Sequa Corp.'s precoat metals unit from Carlyle Group .
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AZZ to boost North American coatings production with new plant near St. Louis