AO Smith Corp.’s AOS operating arm, APCOM Inc., disclosed that it is expanding its flagship plant in Franklin, TN. The strategic move is at par with APCOM’s aim of spreading its global water heating business in the U.S.
APCOM is spreading the facility by 57,750 square foot, which will expand the plant by over 40%. The construction, which involves the extension of warehousing and manufacturing operations, is anticipated to finish by the third quarter of coming year. The expansion will initially aid APCOM is augmenting its import, exports and warehousing. To be particular, the company has planned to use about 34,000 square feet of the extended space for warehousing and one tractor ramp.
Apart from this, the plant expansion will offer more space for APCOM’s service parts operations. Also, the company has decided to use the expanded space at the facility for development of new products in coming years.
We believe the abovementioned development will pave the way for further top line strengthening of AO Smith. It will boost the overall operations of APCOM and its parent company AO Smith at large.
As a matter of fact, APCOM is one of the leading global manufacturers of reliable water heating and appliance components. The company produces products like heating elements, dip tubes, thermostats, anodes, drain valves and gas burner assemblies.
AO Smith currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include CUI Global, Inc. CUI, Encore Wire Corp. WIRE and Harman International Industries, Incorporated HAR. While Encore Wire carries a Zacks Rank #1 (Strong Buy), CUI Global and Harman International hold a Zacks Rank #2 (Buy).
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