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A.O. Smith Expands Production of IHP Motors at Juarez, Mexico Operation

January 29, 2001 - Company also completes capital improvements to the plant to accommodate increased production now – and expected growth in its IHP business later.

Tipp City, Ohio – A.O. Smith Electrical Products Company has expanded the production of integral horsepower motors at its Juarez, Mexico operation. The action supports A.O. Smith’s commitment to maximizing productivity at all 26 of its electric motor manufacturing locations. It also underscores the company’s dedication to both its integral horsepower motor line and its position as a single-source supplier of electric motors to the heating, ventilation, air conditioning and refrigeration (HVAC/R) markets.

A.O. Smith now will be manufacturing all integral horsepower motors rated three to 30 horsepower at its Juarez operation. This includes three-phase open dripproof EPAct (E-Plus®) and premium (E-Plus3®) designs, available in 3600, 1800 and 1200 RPM used in fan, blower, pump, and conveyor applications. Many of these motors also are Speed-Engineered® to be corona-free for compatible inverter duty.

To accommodate expanded production of integral horsepower motors at its Juarez plant and prepare for future growth in its integral horsepower business, A.O. Smith also completed extensive improvements to the manufacturing facility. Production lines have been re-configured to accommodate a switch from batch manufacturing to the more efficient direct-flow manufacturing process. New machines for manufacturing motor frames and die-casting rotors also increase the plant’s production capacity. In addition, A.O. Smith introduced its formal Continuous Improvement methodology in 2000 as well as its customer quality line-watch for increased customer satisfaction.

"Capital improvements and other modifications will enable us to double production of integral horsepower motors at this facility," according to Steve Donithan, vice president-Mexican operations. "It is a state-of-the-art facility that can produce the level of quality and cycle times our customers have come to expect from A.O. Smith."

The expansion of the three-to-30 horsepower motor line significantly strengthens Juarez’s position as one of A.O. Smith’s major motor manufacturing centers. The Juarez operation includes 11 facilities, totaling over 950,000 square feet of well-equipped manufacturing space where A.O. Smith also produces fractional horsepower AC motors, from 3.3 inches to 56 frame, and its complete line of 42-frame through 180-frame DC motors.

The majority of these motors are used in HVAC/R applications. More than 80 percent of the A.O. Smith motors sold into the HVAC/R market are produced in Mexico – either in Juarez or in facilities located in Monterrey and Acuna.

"Our Juarez operation has the capacity and the ability to meet customer demands for value and timely delivery now, and continue meeting projected growth in our IHP business in the future," said Paul Doyle, vice president-marketing, for A.O. Smith Electrical Products Company. "We view this move as an important step in expanding our IHP business and in strengthening our position as a single source of electric motors for customers in North America and overseas."

A.O. Smith Electrical Products Company maintains 26 manufacturing locations in five countries, supported by sales and distribution worldwide. This extensive network provides the company the global reach to meet its customers’ complete motor needs.

A.O. Smith Electrical Products Company, based in Tipp City, Ohio, is A.O. Smith Corporation's largest operating unit, with 2000 sales of $884 million. It manufactures a comprehensive line of hermetic and subfractional, fractional, and integral horsepower AC and DC electric motors used in a wide array of consumer, commercial, and industrial products.