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Kreisler Manufacturing Corp. (KRSL.PK) Details Expansion Project and 3 Strategic Agreements

Kreisler Manufacturing Corp. manufactures precision metal components for military and aerospace use, commercial aircraft engines and industrial gas turbines. The company today announced its strategic capital investment project at its Kreisler Polska subsidiary designed to expand the company’s manufacturing and production capabilities in Poland.

After its estimated completion in December 2010, the Kreisler Polska expansion is expected to enhance competitiveness and generate long-term revenue growth. Kreisler said the project reflects its growing presence in Europe and its drive to meet rising customer demand.

“These actions are designed to enhance our competitive position as well as enable Kreisler to compete for expanded market share leading to revenue growth. Additionally, by extending and complementing capacity at Kreisler Polska we will be well positioned to meet growing demand internationally,” Kreisler CEO Michael Stern stated in the press release.

The project will include a new 60,000-square foot manufacturing facility in Niepołomice, Poland, that will enable the company to significantly ramp up its tube and manifold assembly capabilities. It will also increase production and machining capacity.

In accordance with its expansion efforts, Kreisler has also entered into a 10-year long-term agreement with two customers. Per the agreement, more than 1,000 part numbers, which are currently produced by these customers, will be produced at Kreisler Polska’s new facility.

Additionally, Kreisler inked an equipment purchase and sale agreement with a third customer to purchase certain manufacturing and assembly equipment necessary for Kreisler Polska to produce tube and manifold assemblies of multiple sizes and configurations.

“The capacity expansion and supporting long-term agreements enhances our ability to deliver the next generation of turbine engines and demonstrates our organizations strong commitment to our customers,” Ned Stern, Kreisler’s CFO stated. “The expansion is a significant business growth opportunity and we appreciate the support and assistance provided by the European Union and the Polish Enterprise Development Agency to make this project a reality. We look forward to a great partnership with this community for many years to come.”

The terms of the long-term agreement is expected to be completed by March 2012.

For more information visit www.kreislermfg.com

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