Monahan Filaments Announces Strategic Changes
Monahan Filaments, a subsidiary of The Thomas Monahan Company in Arcola, Illinois, has announced a number of changes and plans to better position the company going forward in the global marketplace.
Tai Hing Nylon Products and Monahan Filaments sign Marketing Agreement- As previously announced, Tai Hing and Monahan Filaments have reached an agreement to cross market products in their respective markets where it makes sense to those markets and customers. Tai Hing, known for their Lasson brand of nylon products operates an ISO 9001 certified facility in Zhanjiang, China and are planning to move into a new larger facility in Shenzhen later this year which will allow for a doubling of capacity. In addition to nylon 6, 6.6, and 6.12, Tai Hing produces polyester and has the capability of chemical tipping or tapering these for paint and industrial markets. Monahan Filaments operates two facilities in the US with the more recent start up of filament production in Arcola, IL in a 48,000 sq ft plant there.
Going forward, Monahan and Tai Hing will cross market products in their respective markets and to selected accounts globally. States Brian Crawford, MFI's Director of Sales Marketing, " The range of products produced by Tai Hing fits nicely into our product assortment for all markets in North America and together the offering of both companies compliments each other. We feel that with the association we will be bringing not only value but value with the highest quality to our customers here." Wilson Lau, President of Tai Hing agrees and commented that "We see the close cooperation with Monahan as a benefit to our customers and to those that the two companies share as well. Our companies share a common strategy and vision with respect to being innovative and offering value to the market".
Monahan Filaments and Nexstar form Indian joint venture- A joint venture between Monahan Filaments and Nexstar Middle East LLC has also been announced recently. A new factory, located in a tax free zone north of Delhi, will be in operation by the end of the third quarter of 2009 for the production of synthetic filaments. According to Jehangir Pervez, the President of Nexstar, "The Joint Venture between Monahan Filaments and Nexstar will result in a high quality production plant strategically located to serve the dynamically growing Indian market. Once operational, the filaments produced will find application in paint brushes, industrial brushes, as well as in construction and personal care products. I am extremely pleased to work together with Monahan Filaments, a proven leader in innovation and production techniques."
With a focus on tapered paint filaments to start, these will be offered as extruded as well as flagged, chemically tipped, and where necessary mechanically tipped for sale into the Indian market as well as to Europe and Asia. Mechanically tapered, chemically tipped filaments will be exported back to the US, where these will be marketed by Monahan Filaments.
"The Joint Venture with Nexstar, brings our production techniques and product innovation to an area of the world that we need to operate in. India represents a tremendous market for us and we are excited to participate in it through this Joint Venture," according to Tim Monahan, of the Thomas Monahan Company. "The Indian market is growing at a sustained rate of 12-15% per year, with a real focus on building infrastructure. Our focus to begin will be in the paint filament area, but the plans are to produce nylons and polyesters for industrial markets, as well as filaments for construction and oral care, " adds Brian Crawford of Monahan. "This affords us a tremendous opportunity and we are very pleased to be associated with Nexstar"
US Operations-
In mid 2008, a new Monahan Filaments facility was started up in Arcola, IL. This 48,000 sq ft plant began operations with the production of filaments for oral care customers, assisted by the proximity to those accounts. Several quality audits were performed and production began in September. One of the benefits to our Midwestern accounts is the fact that the products produced here can be combined with metal handles from Handles USA and natural fibers from Brush Fibers, Inc and shipped on trucks operated by The Thomas Monahan Company.
As suppliers and customers alike in the brush industry have been affected by the economic slowdown, Monahan Filaments has not been an exception. This, unfortunately, has led to a decision to downsize operations at the firm's Middlebury Vermont facility which will be effective from the beginning of July forward. The facility will remain open after that date, and will continue operations, but the focus will be narrower and consistent with the assets and experience at that location. " Difficult times require sometimes difficult decisions, and the downsizing of Vermont was not an easy one to make", stated Jon Monahan President of Monahan Filaments. "We, as did the predecessor companies that extruded product in Middlebury, have had the benefit of qualified personnel and valuable experience but moving forward the decision had to be made."
"Change in our world is inevitable, and probably is the only factor that can be counted on. The aforementioned strategic changes are both necessary and important to the future successful operations of Monahan Filaments and to our ability to supply highest quality product, at competitive prices, to our customers", according to Ned Lunt, CEO of The Thomas Monahan Company.
