CLEVELAND, March 29 /PRNewswire-FirstCall/ -- Hawk Corporation (Amex: HWK)
announced today an expansion of its domestic U.S. manufacturing capacity with
a planned addition of a new world-class plant at the Port of Catoosa (Tulsa),
Oklahoma. The 240,000 square foot plant will manufacture friction products as
part of the Company's Wellman Products Group, and will incorporate production
currently housed in Wellman's Brook Park, Ohio facility, as well as expanded
capacity to address market growth and new sales opportunities.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001129/HWKLOGO )
Ronald E. Weinberg, Chairman and CEO of Hawk said, "We continue to believe
in the importance of premier domestic production of our products. After all,
the United States is still our largest market and we need to be able to offer
our customers' rapid logistics support, top quality manufacturing and
competitive pricing. We will be able to continue to meet these goals with our
new facility."
The Company plans to begin construction of the new facility in the second
quarter of 2004, with completion expected during the first quarter of 2005.
As previously announced, the commencement of operations at the new facility
will require the closing of Wellman Products' Brook Park, Ohio facility. The
relocation of the Brook Park operation to the new facility will begin in late
2004 and is expected to be completed in early 2005. Expenses related to the
relocation are estimated to be approximately $2.0 million in 2004, which will
be heavily weighted toward the fourth quarter. Additional expenses of
approximately $3.0 million to $3.5 million required to complete the relocation
process are expected in 2005.
The Company expects to recognize approximately $2.5 million of annual cost
savings from the new facility once the operation is in full production in
2005.
The Company
Hawk Corporation is a leading worldwide supplier of highly engineered
products. Its friction products group is a leading supplier of friction
materials for brakes, clutches and transmissions used in airplanes, trucks,
construction equipment, farm equipment and recreational vehicles. Through its
precision components group, the Company is a leading supplier of powder metal
and metal injected molded components for industrial, consumer and medical
applications, including pump, motor and transmission elements, lawn and garden
equipment and heart pacemakers. The Company's performance racing group
manufactures clutches and gearboxes for motorsport applications and
performance automotive markets. Headquartered in Cleveland, Ohio, Hawk has
approximately 1,550 employees and 15 manufacturing, research and
administrative sites in 4 countries at its continuing operations.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning
of the federal securities laws with respect to the Company's financial results
and future operations and, as such, concerns matters that are not historical
facts. These statements are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed in such
statements. These risks and uncertainties include, but are not limited to:
the timely completion of construction of the new Wellman Products' facility;
the ability to hire and train qualified people at the new facility; the
ability to transfer production to the new facility and commence production at
the new facility without causing customer delays or dissatisfaction; the
ability to achieve the projected cost savings at the new facility, including
whether the cost savings can be achieved in a timely manner; and higher than
anticipated costs related to relocation of the Wellman Products' facility.
Actual results and events may differ significantly from those projected in
the forward-looking statements. Reference is made to Hawk's filings with the
Securities and Exchange Commission, including its annual report on Form 10-K
for the year ended December 31, 2003, its quarterly reports on Form 10-Q, and
other periodic filings, for a description of the foregoing and other factors
that could cause actual results to differ materially from those in the
forward-looking statements. Any forward-looking statement speaks only as of
the date on which such statement is made, and the Company undertakes no
obligation to update any forward-looking statement, whether as a result of new
information, future events or otherwise.
Hawk Corporation is online at: http://www.hawkcorp.com
SOURCE Hawk Corporation
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http://www.hawkcorp.com
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CONTACT:
Ronald E. Weinberg, Chairman, CEO and
President, or Thomas A. Gilbride, Vice President - Finance of
Hawk Corporation, +1-216-861-3553; or Investor Relations, John
Baldissera of BPC Financial Marketing, +1-800-368-1217
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