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07/01/2002
By: David Prizinsky
A reinvigorated Hunter Manufacturing Co. in Solon is turning up the heat for the U.S. Army.
Hunter, which was acquired 18 months ago by RockWood Equity Partners in Cleveland, last week won a 10-year, $106 million contract for large-capacity military tent and building heaters that will add more fuel to the company's recent growth, said CEO Vince A. Nardy.
Hunter packaged its bid for the large-capacity field heaters last December, at the same time the company's employees were giving up their holidays to turn out 3,000 smaller-capacity heaters for use by the Army in Afghanistan.
"We didn't have much of a holiday, but we received a letter of commendation (from the Defense Department) for supporting our troops," Mr. Nardy said.
Mr. Nardy said Hunter would manufacture "a few hundred" of the large capacity heaters each year under terms of the contract. Hunter's chief financial officer, Steven T. Demko, said the contract requires about 18 months of development and testing before full-scale production begins at the start of 2004.
Hunter's new Army contract could result in additional hiring in Solon, and Mr. Nardy said a plant expansion project also is under consideration. He said the company may add 25,000 square feet to the shop floor, which would increase the Solon plant's size by about 40% to 85,000 square feet from the current 60,000 square feet.
The nation's war on terrorism is producing increased demand for its products, but Hunter's growth also is the result of a new mindset that accompanied the change of ownership at the 65-year-old company.
"The new owners saw untapped potential," Mr. Nardy said.
At the time of the Hunter acquisition in late 2000, Rockwood officials said they would grow the company through a combination of product development and acquisitions. RockWood co-founder Brett R. Keith said Hunter's sales are on the rise and the company is on track to meet a goal of $75 million to $100 million in annual sales by 2005.
"We are delighted with the performance of the management team at Hunter," Mr. Keith said.
Mr. Nardy said Hunter's sales have increased 50% in the past two years, and employment at Solon has doubled to about 150 in the same period. Mr. Nardy would not disclose specific sales figures.
In addition to heaters, Hunter makes air filtration systems that can protect buildings from nuclear, biological and chemical contamination. The air filtration systems account for about half the company's sales. Mr. Nardy said Hunter is investigating the replication of this technology for use in public buildings that could be subject to terrorist attacks.
Hunter also has added a new line of heater products that will improve the company's ability to serve the military market.
Last year, Rockwood Equity acquired the military heater division of Global Thermoelectric Inc. in Calgary, Alberta. Hunter moved the manufacturing assets to Solon and qualified the local plant as a production location for the U.S. Department of Defense.
John P. Custer, VP of sales and marketing for Hunter, said the new line of heaters will be used in tanks and other military vehicles. Mr. Nardy said Hunter is confident it will be able to supply the new product to the Pentagon under contracts that will be awarded soon.
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