Core has formed the subsidiary, Core Specialty Composites LLC, to manage the new business. It will operate out of a manufacturing site located in Warsaw, Kentucky. The facility includes 62 000 ft2 of leased manufacturing space. Core’s existing plant in Batavia, Ohio, will provide management support to the Warsaw site.

Core says operations will initially include production of large parts using a customised hand lamination process. Development and staffing activities are underway. Production is planned to begin early in 2012. The Warsaw operation is expected to employ approximately 40 people. Revenue for the new business is projected to be US$5-8 million annually.

Core has been focused on growing its business beyond its traditional heavy truck accounts for several years.

Core’s director of market development, Mark Murfitt, led the effort to launch the new business.

“Our work has included a great deal of product development. Additionally, we’ll be utilizing some new process technology for Core,” he says. “We’re now actively building tooling and acquiring the necessary manufacturing permits and equipment.”

Core will lease the building in Warsaw, but will make a capital investment of approximately $1.7 million for equipment and technology to support the operation.