Rockwood’s Capstan Operation Cements Key Business
Wednesday May 28, 2008
Capstan Tennessee, a powdered-metal manufacturer located in Roane County Industrial Park, announced the signing of a key contract extension today, locking in the majority of their business through 2013.
Rockwood, TN - Capstan Tennessee, a powdered-metal manufacturer located in Roane County Industrial Park, announced the signing of a key contract extension today, locking in the majority of their business through 2013.
The contract cements for another five years Capstan's agreement to manufacture parts for Caterpillar, their main customer. Capstan purchased the former Caterpillar plant in 2004. Part of the purchase agreement was a five-year contract to continue the production of parts for Caterpillar. That contract was due to expire in early 2009, according to the Rockwood plant's general manager, Loren Bone. But just last month another five-year extension was executed. The new contract continues that relationship until December 31, 2013.
The Rockwood facility is one of four plants operated by Capstan Inc. The others are located in Los Angeles, Calif, Wrentham, Mass and in Guadalajara, Mexico. Mark Paullin, President of Capstan Inc., said the business has grown significantly in the last four years and attributes the growth to the people at the Rockwood facility and their customer focus.
Bone agreed that the agreement does certainly reflect highly on the quality of the work performed at the Rockwood facility. And, he said, "Anytime you can do something that allows you to plan five years down the road, everyone's life is much brighter."
"Caterpillar has been doing very well in the last few years," Bone explained. "They are big into mining equipment and mining is going great guns now....We have been very lucky....some 70 percent of the powdered metal industry is heavily into the automotive industry and they are really hurting now, but the automotive industry is zero percent of our business here."
To illustrate that, Bone estimated that since the 2004 acquisition, sales at the plant have increased a full 80 percent and their workforce has also seen slow, but steady increases. They now employ an average of 117 employees, up from 90 when Captain Tennessee took over.
"Capstan is a good employer and a good corporate citizen," Leslie Henderson, President/CEO of The Roane Alliance said of Capstan Tennessee, which was honored two years ago by the Industrial Development Board with a beautification award. "Their plant is not only a strong contributor to our local economy, but it is also a model to others in so many ways."
