Advanced Atomization Tech to Expand NY Plant, Workforce (Revised)
Recently, Advanced Atomization Technologies (AA Tech) – the joint venture between Parker (PH) Aerospace and GE Aviation (GE) – announced plans of expanding its New York facility. The facility extension at Clyde, NY is primarily intended to meet the pent up demand for new aircraft engines – production of which is expected to grow manifold moving forward, thanks to the increased demand for commercial aircraft. Further, through the expansion, AA Tech plans to create 80-100 new jobs in a span of five years to support the increased work volume.
Headquartered in Clyde, NY, AA Tech primarily manufactures fuel nozzles for leading aircraft engines of both GE and Parker, apart from being incorporated in the industrial engines manufactured by GE Aviation. Moreover, the company provides after market services to its customers through its facilities at Glendale, Arizona; Kuala Lumpur, Malaysia; and Petropolis, Brazil. Some of the company’s notable products are the LEAP fuel atomization nozzle – one of the most advanced fuel nozzles used in modern propulsion.
The facility expansion is scheduled to start by Oct 2014 and is expected to be complete by Feb 2016. Notably, the plant – sprawling across 28,000 square feet with team rooms, a multi-purpose and lunch room, an exercise space along with will an advanced and improved parking space – will house high-tech manufacturing equipment worth $20 million.
This spreading out is expected to support the growing demand in the airlines industry. Over the next 20 years, global airlines are likely to invest in excess of $4 to $5 trillion in fleet development. Apart from the high demand from the oil rich Gulf nations, major part of the fleet demand will also be driven by China and India along with the continuous expansion of low-budget carriers around the world.
Although Parker carries a Zacks Rank #4 (Sell), there are some better-ranked companies in the machine and general industries sector which are currently performing well. These include Middleby Corp, (MIDD) and Nordson Corporation (NDSN), both carrying a Zacks Rank #2 (Buy).
(We are reissuing this article to correct a mistake. The original article, issued on Oct 8, 2014, should no longer be relied upon.)
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