Rogers Corporation Announces New Factory in Monterrey, Mexico
Rogers Corporation (NYSE: ROG) announces a new factory in Monterrey, Mexico for advanced busbar manufacturing to support the growing demand in North America for electric and hybrid-electric vehicles, renewable energy, mass transit, and industrial markets. The facility is expected to be completed by late 2024, enhancing Rogers' ability to provide high-quality power distribution solutions and technical collaboration to its global customers.
The expansion of Rogers Corporation's manufacturing footprint into Monterrey, Mexico, represents a strategic move to align with the burgeoning demand for electric and hybrid-electric vehicles (EV/HEV) and renewable energy solutions in North America. By situating an advanced busbar manufacturing facility closer to key markets, Rogers is poised to capitalize on the proximity to its customer base, which can lead to enhanced service levels and reduced lead times—two critical competitive advantages in the fast-paced EV/HEV sector.
From a market perspective, the investment in local prototyping and supply capabilities indicates a shift towards more agile manufacturing processes, allowing for quicker adaptation to market changes and customer needs. This could potentially result in increased market share and customer loyalty, as OEMs and other industrial partners prioritize suppliers with faster turnaround times and collaborative engineering support.
Moreover, the commitment to technical collaboration and co-engineering support underscores the importance of innovation and customization in advanced manufacturing. As busbars are a vital component in power distribution systems, their performance and reliability directly impact the overall efficiency of EV/HEV and renewable energy applications. Rogers' focus on quality and reliability may enhance its brand reputation and lead to stronger partnerships within the industry.
Rogers Corporation's investment in a new factory is a significant financial move that could influence its capital expenditure in the short term but is expected to yield operational efficiencies and cost savings in the long term. The strategic location in Mexico, known for its competitive manufacturing costs, may result in lower production expenses and an improved gross margin profile for Rogers.
Investors should note that the company's focus on capacity throughput improvements at existing facilities, alongside targeted investments in new capacity, suggests a balanced approach to growth and operational excellence. This can be reassuring, as it indicates a management strategy that seeks to optimize existing assets while pursuing expansion opportunities.
The factory's slated completion in late 2024 means that any potential financial benefits would likely become evident in the fiscal periods following the commencement of operations. It is important to monitor how the capital outlay for this project aligns with Rogers' overall capital allocation strategy and how it impacts the company's cash flow and debt levels.
By establishing a new manufacturing site in Monterrey, Rogers Corporation is addressing a critical aspect of supply chain management—geographical diversification. This move can be seen as a hedge against regional disruptions, such as those experienced during the COVID-19 pandemic, which highlighted the vulnerabilities of concentrated manufacturing hubs.
The choice of Monterrey, with its proximity to the United States, suggests a reduction in transportation costs and potential mitigation of tariffs and trade barriers, which are significant considerations in cross-border supply chains. Additionally, the local manufacturing presence can improve responsiveness to North American customers, a key factor in supply chain agility.
Localizing production also aligns with the trend towards sustainability in supply chains, as shorter shipping distances can lead to reduced carbon footprints. This is particularly relevant in the EV/HEV and renewable energy sectors, where customers and stakeholders increasingly demand environmentally responsible practices from their suppliers.
02/22/2024 - 08:30 AM
New facility will support growing EV/HEV and renewable energy demand in North America
CHANDLER, Ariz. --(BUSINESS WIRE)--
Rogers Corporation (NYSE: ROG) announced today that it has signed a lease on a factory in Monterrey, Mexico for advanced busbar manufacturing and engineering services. The first phase of the new site is slated for completion in late 2024 and continues Rogers’ manufacturing footprint strategy of supporting customers in the regions where they operate.
Rogers’ advanced ROLINX® busbars provide effective and efficient power distribution in a variety of applications in the electric and hybrid-electric vehicle (EV/HEV), renewable energy, mass transit and industrial markets. Customers choose ROLINX® busbars based on Rogers’ proven quality and reliability, electrical and mechanical expertise, co-engineering support and flexible lead times.
“We are excited to expand our presence in North America to better support our global customers and the growing EV/HEV and renewable energy markets in this region. Our new factory in Monterrey will enable us to better support our customers with deeper technical collaboration, and local prototyping and supply capabilities that reduce lead times and improve service levels,” said Jeff Tsao, Advanced Electronic Solutions (AES) Senior Vice President and General Manager.
This latest investment continues Rogers’ support of growth opportunities across its markets with ongoing initiatives to drive capacity throughput improvements at existing facilities and make targeted investments in new capacity.
About Rogers Corporation
Rogers Corporation (NYSE:ROG) is a global leader in engineered materials to power, protect and connect our world. Rogers delivers innovative solutions to help our customers solve their toughest material challenges. Rogers’ advanced electronic and elastomeric materials are used in applications for EV/HEV, automotive safety and radar systems, mobile devices, renewable energy, wireless infrastructure, energy-efficient motor drives, industrial equipment and more. Headquartered in Chandler, Arizona , Rogers operates manufacturing facilities in the United States , Asia and Europe , with sales offices worldwide. For more information, visit www.rogerscorp.com .
Safe Harbor Statement
Statements included in this release that are not a description of historical facts are forward-looking statements. Words or phrases such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “seek,” “plan,” “expect,” “should,” “would” or similar expressions are intended to identify forward-looking statements, and are based on Rogers’ current beliefs and expectations. This release contains forward-looking statements regarding our plans, objectives, outlook, goals, strategies, future events, future net sales or performance, capital expenditures, future restructuring, plans or intentions relating to expansions, business trends and other information that is not historical information. All forward-looking statements are based upon information available to us on the date of this release and are subject to risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to differ materially from those indicated by the forward-looking statements. For additional information about the risks, uncertainties and other factors that may affect our business, please see our most recent annual report on Form 10-K and any subsequent reports filed with the Securities and Exchange Commission, including quarterly reports on Form 10-Q. Rogers Corporation assumes no responsibility to update any forward-looking statements contained herein except as required by law.
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Media:
amy.kweder@rogerscorporation.com
Investor :
stephen.haymore@rogerscorporation.com
Source: Rogers Corporation
What is the purpose of Rogers Corporation's new facility in Monterrey, Mexico?
The new facility is for advanced busbar manufacturing and engineering services to support the increasing demand for electric and hybrid-electric vehicles, renewable energy, mass transit, and industrial applications in North America.
When is the first phase of the new site in Monterrey expected to be completed?
The first phase of the new site is slated for completion in late 2024.
What are the key markets that Rogers Corporation's advanced ROLINX® busbars cater to?
The advanced ROLINX® busbars by Rogers Corporation cater to electric and hybrid-electric vehicles (EV/HEV), renewable energy, mass transit, and industrial markets.
Why do customers choose ROLINX® busbars from Rogers Corporation?
Customers choose ROLINX® busbars for Rogers' proven quality and reliability, electrical and mechanical expertise, co-engineering support, and flexible lead times.
Who commented on the expansion into North America and the new factory in Monterrey?
Jeff Tsao, Advanced Electronic Solutions (AES) Senior Vice President and General Manager, commented on the expansion into North America and the new factory in Monterrey.
