In back-to-back announcements during successive weeks in April, process instrumentation and factory automation vendor Siemens Energy & Automation Inc. (SE&A), Alpharetta, Ga., has unveiled two U.S. investments aimed at strengthening its position in different market segments.
On April 11, SE&A, an operating company of Munich, Germany-based Siemens AG, announced plans to acquire the assets and business of Controlotron Corp., a maker of non-intrusive ultrasonic flow meters based in Hauppauge, N.Y. Then on April 19, SE&A unveiled plans to invest $7.2 million to expand its manufacturing plant in New Kensington, Pa.—at a site formerly known as Robicon, an AC drives maker that was acquired by SE&A in July 2005.
In describing the Pennsylvania plant expansion, Siemens said it plans to create 145 new full-time positions when the expansion is complete, for a total of 480 positions in New Kensington. The 30,000 square foot facility is expected to be completed in March 2007.
The company said the expansion and redesign will make the New Kensington plant more efficient and productive. The new facility will support SE&A’s growing large drives business, specifically the Robicon Perfect Harmony brand. The enhanced plant will be dedicated to developing, assembling and testing large variable frequency drives that are used in oil and gas, power generation, and municipal wastewater applications. In addition to the new facility, SE&A will maintain its current New Kensington plant facility and offices along with its technical product development center in nearby Plum Borough, Pa. Siemens said the state of Pennsylvania has offered the company a number of incentives to help secure the investment and move ahead with the upgrade.
“The New Kensington facility is of significant importance to Siemens’ growth strategy,” said Gary Rauscher, vice president and general manager, Large Drives, for SE&A. “We are confident that it will become a center of excellence for Siemens by producing the highest-quality large drives for our customers, and by accelerating drive technology innovations that will dramatically improve the efficiency of the manufacturing process throughout the world.”
In describing the Controlotron acquisition, SE&A said that it has signed an Asset Purchase Agreement, and that it expects to close the deal in May 2006. Terms were not disclosed.
Controlotron, which has more than 40 years experience providing liquid and gas flow measurement solutions, has the largest installed base of ultrasonic flow meters worldwide, Siemens said. The acquisition is expected to enhance the company’s position in this market segment. SE&A said it intends to operate the company from its Hauppauge location, which it plans to make a center of competence for ultrasonic flow measurement. Controlotron employs about 120 people, to whom Siemens plans to extend formal offers of employment one week prior to closing.
“The purchase of Controlotron will strengthen Siemens’ portfolio and broaden its presence in the process instrumentation market,” said Aubert Martin, president and chief executive officer of Siemens Energy & Automation. “Controlotron is highly recognized for its advanced technology in non-intrusive flow measurement, and its strong market positions in oil and gas, water and wastewater, HVAC (heating, ventilation and air conditioning), energy and pipeline applications. A combined portfolio of Siemens and Controlotron products, services and solutions represents a robust and complementary offering to our customers.”