Visions - Fall 2007 - (Page 4)

continued Larry Lack, Vice President of Manufacturing Richard Hodges, Mineral Wells Plant Manager and Kingman Plant Project Manager (Above) Storage silos to house materials used in the manufacturing process. (Above left) The elaborate rack system for product in the new warehouse. future expansion — even the walls were built to be expandable.We had experiences with the other plants where we could not expand, and we didn’t want that problem here. Labor is a big part of our cost. About 20 years ago it was maybe 15% of our costs, today it’s more like 30%.You are a lot better off the more you can automate.” Kingman Plant Self-Sufficient and Self-Sustaining CANTEX’s Kingman facility supports a multi-tier advancement in its overall production model. Plant electrical power is streamlined so energy costs are cut by nearly $200,000 a year. Rail car support has been maximized, as have the 12 silos that house materials used in the manufacturing process. The water filtering systems now exist underground as noise and safety concerns mandated. Blender areas for compounds are maximized with room for expansion, and the same goes for the oversized hopper and bag systems that maintain dust control. All these precautions and advances promote CANTEX’s goals of eliminating material waste, minimizing product recalls, and reducing direct labor. At the Kingman plant, production depends much on new automated technology, a new mainstay of CANTEX’s future. “Other plants had input into how this plant was arranged, how they would like it to be if it was their plant,” Lack said.“We think we’ve got the best ideas of all the people in CANTEX in this facility.” Kingman Joins Other CANTEX Plants in Providing Nationwide Coverage for PVC Pipe Market Sumitomo’s partnership with CANTEX reflects a commitment to growth in manufacturing and supply 4 visions Fall 2007

Table of Contents Feed for the Digital Edition of Visions - Fall 2007

Visions - Fall 2007 Contents CANTEX State of the Art Plant Key to Southwestern Market SCOA Steel & Non-Ferrous Group Enters Wind Energy Market Perennial Power Holdings Continues Policy Of Expertise In Marketplace SCOA Finances New Fluorspar Mine in Mexico SC Rail Leasing America, Inc. Acquires Southern Illinois Railcar Company and its Affiliate Ohio Ag Terminals LLC New Sumitomo Subsidiary Summit VetPharm Enters Booming Animal Healthcare Market

Visions - Fall 2007

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