William Oeters

The first global leap for Hillsdale rapidly became a hotbed for new business as the plant added NVH-related production. Sales soared from zero to $25 million annually. Of the 15-plus programs at the plant, half are now for NVH products. "They are successful down there," William Oeters, President, Hillsdale Division, U.S.A. Eagle-Picher Automotive, boasted.

Only one of the plant's product lines is exported to Europe; everything else is for the Mexican market. "It has been a surprise that business has just taken off. The amount of quoting activity has been a lot higher than any of us expected, and we're even more selective than here in the United States. It could be the result of pent-up demand for a company that can tap into design and development work (done by Hillsdale in the U.S.)," he said.

Other overseas Hillsdale operations are likely, according to Oeters: "We're looking at Brazil. We have one project now and if others come along and we could justify the investment in a facility there, we would do it."

A Tamworth, England, facility represents the second non-U.S. operation. "There were less reservations about England because we had more contracts in place, and we perceive that region as having bigger market potential," Oeters said.

Nonetheless, the move to Mexico has paved the way for future global growth. "It's a non-event for us to think about doing business elsewhere in the world now," he said. Of course, thinking doesn't always translate to action. "We're not going to be the first person in a market. We want to make sure we've got the business to justify the investment."

Oeters predicts that by 2005, the Hillsdale Division will have opened another two to five non-U.S. locations. "We're dealing in a global market. It can be very important to be as physically close as possible to customers to respond quickly to manufacturing, quality, launch issues, and anything else," Oeters said.

Kami Buchholz