Kaydon Corp. Bearings Division manufactures bearings for numerous applications, including wind energy turbines.

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Kaydon Corp. has invested $85 million in new factories, expansions and equipment to prepare itself for the growing wind energy market, says Jeff Manzagol, president of Kaydon’s Bearings Division. Wind energy farms have grown significantly in Europe in the last 10 years and in the United States over the last five years.

Last year, the U.S. market experienced a 40 percent increase, and Manzagol predicts “strong, double-digit growth” in the next five to 10 years. He also expects the wind energy market to expand in Asia and Eastern Europe, as well.

Kaydon’s Bearings Division manufactures thin-section bearings, light- to medium-duty and heavy-duty turntable bearings, and small-bore turntable bearings that range from less than an inch to 20 feet in diameter. Its products are geared to the aerospace, defense, semiconductor and construction industries, and they can also be used to make surveillance, scanner and material-handling equipment.

The company provides bearings that are up to 12 feet in diameter for the wind energy sector, Manzagol says, as well as components for the cranes used to build wind towers.

The company has five manufacturing facilities in the United States and two in Mexico. One of its Mexican facilities manufactures components exclusively for the wind energy sector, and three others also provide wind energy products.

In December, the company completed a $55 million acquisition of Avon Bearings Corp., a designer and manufacturer of high-precision, large-diameter turntable bearings. Both Avon and Kaydon provides products for the wind energy market, Manzagol explains.

“It will add immediate capacity to our growing wind energy platform while strengthening existing customer relationships and adding others,” James O’Leary, Kaydon president and CEO said in a statement.

Also, last year, the company invested $29 million to expand and create new jobs at two of its plants in Sumter County, S.C., Manzagol adds. “I think growth [in the wind energy market] will be pretty solid for five to 10 years, but that is dictated by government legislation,” he notes. “If they support renewables, we could grow faster.

“We will continue to look at investments in renewable energy,” he adds. “There is more potential for growth in that industry and we see some international potential.”

Medical Market
The demand for medical equipment, such as CT scanners, has also impacted the company, Manzagol says. Kaydon provides thin section bearings and turnable bearings for these products.   

The demand for CT scanners has grown by 7 to 8 percent each year since they were introduced in the 1970s, he says, although the technology has been upgraded continuously. For example, “People prefer high-speed [machines] with very little noise,” he says.

Over the past couple years, the company has invested more than $10 million in capacity and process improvements in the medical field. “We have developed technology test labs and invested millions as far as new process technology [for this market],” he says.
    
Niche Player
Kaydon Bearings is one of 10 divisions under Kaydon Corp. Its other divisions are Canfield Technologies, Industrial Tectonics Inc., Kaydon Ring & Seal, Ace Controls Inc., Tridan International Inc., Purafil, Copper Bearings, Indiana Precision Inc. and Kaydon Custom Filtration.   

Kaydon prides itself for being a global firm, Manzagol says. Two-thirds of its business is from the United States and the rest is international.

Manzagol says he hopes to continue to grow the company’s international presence, especially in India, Eastern Europe, Latin America, Russia and Asia-Pacific.

It is also looking to grow in the medical and semiconductor industries, as well as enter the solar energy market. “We want to stay a niche player,” he adds. “We had much growth between 2003 and 2008 through acquisitions and organically. The market is big enough that we should be able to have impressive growth to come.”