Keystone Powdered Metal Co. and Engineered Sintered Components Co. have announced a planned merger on March 31.
Both companies are affiliates of Sumitomo Electric Industries, and are members of the SEI Sintered Metal Components Division.
Keystone has locations in both Lewis Run in McKean County and St. Marys in Elk County.
“As a result of this merger, no, we don’t expect any near-term impact on employment levels,” said Michael Werner, vice president of sales and marketing.
No changes are expected that would impact workers, he added.
However, business is booming, which is leading to more need for personnel.
“Both the St. Marys and Lewis Run facilities are currently experiencing rapid growth in both sales and employment levels,” Werner said. “Job seekers are encouraged to apply on-line through Indeed.com.”
In the longer term, he explained, “The merger positions the company to capitalize on opportunities in the marketplace which can only serve to boost the local economy. It’s good news for our whole region.”
A release from the company said the merger is intended to leverage synergies that will strengthen the product/process portfolio and technical expertise of a new leaner and more agile manufacturer of powder metal components for the North American automotive, outdoor power equipment, and industrial equipment markets. The merged entity will retain the Keystone Powdered Metal Company name.
Keystone was founded as a private company in 1927 and has been a leader in the powder metal industry, responsible for many product innovations over its history. KPMC’s company headquarters and primary manufacturing facility is located in St. Marys.
In addition, they have two satellite plants in Lewis Run and Cherryville, N.C. Keystone was acquired by Sumitomo Electric Industries in 2016 and has become the flagship for the North American powder metal production group.
ESC is located in Troutman, N.C., about 45 minutes from Keystone’s Cherryville facility. It was started in 1989 as a joint venture between Sumitomo Electric and Eaton Corporation for automotive valve train component manufacturing
KPMC President Michael Stauffer commented, “The synergies of the two companies led us to the decision to pursue the merger. Today’s KPMC product mix slants heavily toward large tonnage highly engineered transmission components while ESC is more focused on high precision engine components. We believe our customers will derive significant value from this merger.”
ESC President Marty Todd added, “Merging the complementary technical staffs will serve our customers well into the future.”
