Emerson Approves $100 Million for New Plants, Improvements

Oct. 21, 2011
Operations in Texas, Brazil and China due to be completed or updated over the next two years

Directors of Emerson, the St. Louis-based industrial group, approved new capital projects estimated at $100 million to build, expand or renovate manufacturing plants in Texas, China, and Brazil. Some administrative space is also in line for improvement in the projects, which would take place over the coming two years. The company has implemented similar improvements in recent moths at plants and technology centers in Minnesota, China, Russia, and Saudi Arabia. Chairman and CEO David N. Farr said the new investments maintain the company’s “ongoing strategy to efficiently and effectively reposition and strengthen Emerson in key locations around the world.”

In FY2011 Emerson invested over $600 million in for new products, cost reductions and infrastructure expansion and upgrades. It plans to invest $700 million in similar efforts during FY2012.

The largest project approved involves a new global engineering and manufacturing headquarters for the Emerson Process Management Valve Automation business, in Houston. Construction will begin for the $30-million, 205,000-ft2 operation early next year.

Another investment in Texas will be a $25-million headquarters for Emerson Process Management’s Regulator Technologies, in McKinney, Tex. It would replace an existing building, with construction to be complete in late 2013.

In Nanjing, China, a $20-million project will renovate a 58,000-ft2 manufacturing plant producing Emerson’s InSinkErator waste disposers and hot-water dispensers for the Chinese market.

Finally, the directors approved plans to build a $24-million office and manufacturing plant in Sorocaba, Brazil, to be occupied by several Emerson business units.

Still to be decided is a plan to invest $20 million to build a 143,000-ft2 manufacturing plant in Noida, India, where the Emerson Power Generation business produces Leroy Somer alternators.

“Emerson is a financially strong company and we are investing globally for the next generation of innovation and growth, as global demand is still positive,” stated Farr. “We continue to expand our capabilities and provide the highest quality and most energy efficient products and services to our customers.”

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