Automotive growth prompts SaarGummi expansion

Pulaski, Tennessee—CQLT SaarGummi Technologies Sarl has recently unveiled plans for an addition to its 130,000-sq.-ft. operation in Pulaski, which focuses on manufacturing sealing systems for the automotive industry. The project is projected to add more than 200 jobs, with current employment sitting at about 320.

The firm said it will purchase additional finishing equipment, improve existing infrastructure and expand the facility’s warehouse space. The project is projected to be complete by 2020.

Financial terms were not disclosed, but the firm described its investment as significant.

“SaarGummi is a company with European roots, with growth happening outside Europe,” SaarGummi CEO Michael Lorig said in an email. “Since 2000, Asia and North America are SaarGummi’s growth regions because of core customer proximity and existing manufacturing capacity. It is logical that the volume growth of the Tennessee plant has a high priority. Overall the market share of SaarGummi in North America is growing.”

SaarGummi said the expansion is in response to growth from original equipment customers it serves, citing the major German players—Mercedes-Benz, BMW and Volkswagen. The Pulaski facility focuses primarily on rubber-based sealing systems for vehicles both for static and dynamic application in automotive and heavy commercial vehicles. SaarGummi aims to achieve smoother material flow and higher productivity through the expansion.

Lorig said that the expansion will bring thermoplastic vulcanizates production to the plant.

According to a Tennessee Area Development news release, the state’s automotive sector employs about 111,000 at more than 900 establishments.

“We are grateful for SaarGummi Tennessee’s ongoing commitment to our state and for the new jobs that will be created in Pulaski,” Tennessee Gov. Bill Haslam said in a statement. “The momentum of our automotive sector is a direct result of the success of the many manufacturers, suppliers and other automotive-related companies that call our state home, and today’s announcement brings us one step closer toward our goal of becoming the No. 1 location in the Southeast for high quality jobs.”

SaarGummi is a global manufacturer of extruded and injection moulded elastomer products for the automotive industry, with 16 locations in Europe, North and South America, and Asia. The firm employs about 5,000.

The firm also unveiled plans to establish an extrusion and finishing plant in Saltillo, Mexico, to serve upcoming launches of original equipment manufacturers.

Lorig said the facility will be about 250,000 square feet and operational by 2017.