Lohmann Corp. will expand plant in Orange County

Lohmann Corp., a California-based company that specializes in adhesive engineering, is expanding in Orange County.

The company plans to close its San Jose, Calif., facility by the end of the year, eliminating 35 positions. All die-cutting activities will transition to a new 25,000 square–foot building under construction at Lohmann’s manufacturing facility in Orange’s Thomas S. Lee Industrial Park.

Lohmann acquired G&L Precision Die Cutting and its San Jose plant in 2009 to complement its adhesive engineering capabilities and coating plant in Central Virginia. According to the company, its products are used in graphics, wearable electronics, construction, medical and automotive sectors.

“Relocating and closing facilities are extremely difficult decisions,” Steven De Jong, Lohmann’s president, said in a statement. “In a highly competitive environment, however, vertically integrating operations in a centralized location is a strategic step in ensuring the continued growth of our businesses.”

Another factor in the decision to move is that the Orange plant has more direct access to North American auto manufacturers and suppliers and the north-south transportation infrastructure that serves them.

De Jong also noted that  “Virginia’s highly competitive tax and regulatory environment is more favorable to Lohmann operations and future growth plans.”

As part of the consolidation, all program work and some employees will move to Virginia. When fully implemented, the consolidation is expected to result in a gain of six employees at the new plant in Orange.