AAF International to Optimize Manufacturing Footprint and Open North American Research and Development Center

LOUISVILLE, KY--(Marketwire - Mar 11, 2013) - American Air Filter Co., Inc. d/b/a AAF International announced a series of strategic moves designed to increase supply chain efficiency, expand operations in high-end product lines, and create a world class research and development (R&D) center near its headquarters in Louisville, KY.

As part of the strategic plan, AAF will close the Lebanon, IN manufacturing plant scheduled to be complete by the end of May, 2013. AAF customers purchasing from the Lebanon plant will be supplied from other AAF plants and distribution centers. The restructuring will allow AAF to more effectively serve its entire customer base in North America with a more responsive manufacturing and distribution footprint. AAF will work with local resources to assist with employees impacted by the closing. In addition, AAF plans to add extra shifts as it expands operations at nearby facilities.

"We sincerely appreciate the hard work and support from all of our employees during this transition. AAF remains committed to our customers and intends to provide a seamless transition of supply in the coming weeks," said Matt Filbern, Vice President of Operations, Americas.

AAF will also carry out several expansion investments to meet current and future customer requirements. AAF began construction on a cleanroom upgrade and expansion in the Columbia, MO manufacturing plant in support of the growing pharmaceutical and life sciences markets. This cleanroom will be a world class cGMP facility making high-end products such as the MEGAcel™ and AstroCel^® product lines. The Columbia cleanroom adds to AAF's current cleanroom facilities in the Netherlands, China, Malaysia, and Japan (Nippon Muki). Next, AAF plans to build a world class R&D and testing facility to be more responsive to North American customers and increase product development speed. This facility will focus on development for local markets in North America, while AAF continues to use its Global Research and Development in Japan to develop global product platforms. The facility will be co-located with manufacturing to optimize testing and development efficiency. Lastly, AAF plans to expand its current Louisville plant to a new location in Louisville, Kentucky or Southern Indiana. This site will house AAF manufacturing for the Power & Industrial division, the Air Filter division, and the new R&D facility. Location selection is now underway.

"Having R&D and manufacturing capabilities near our headquarters will allow us to quickly develop innovative products for our customer base," said Peter M. Kurto, AAF Global Chief Operating Officer. "These expansion plans are designed with the customer in mind, as we strive to provide enhanced service and technology to our customers."

AAF International, based in Louisville, Kentucky, has more than 3,000 employees, 22 manufacturing facilities, and 5 R&D centers worldwide. AAF designs, develops, and manufactures air filtration solutions for commercial, industrial, cleanroom, transportation, and nuclear power applications. AAF also provides inlet air cooling and sound attenuation solutions for high-speed rotating machinery. For more information, visit www.aafintl.com.