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Raven's EFD Adds New Wide-Width Fabrication Capacity

Raven Industries Inc.RAVN declared that its Engineered Films Division (EFD) has added broad-width fabrication capacities in the Madison, S.D. facility. These new capabilities will decrease the fabricated-product lead times of geomembrane liners, custom grain covers and other converted products.

Raven's EFD mainly manufactures high-performance plastic films and sheeting for major markets throughout the U.S. and abroad. An important part of this business is highly technical, engineered geomembrane films that protect environmental resources through containment linings and coverings for energy, agriculture, construction and industrial markets.

The expansion includes a new 150 inches wide layflat winding capability which matches industry demands for prefabricated geomembranes in accordion and c-folded panels. It will generate additional capacity and save time and money onsite by significantly decreasing the number of install days.

For over 50 years, Raven has manufactured and fabricated engineered geomembrane liners and covers to support the environmental sector. The company is dedicated to developing innovative materials by engineering value-added and sustainable products.

However, Raven is facing significant headwinds in the energy market. The company's EFD consumes a large amount of plastic resin, the costs of which are affected by market prices for natural gas and oil. The recent decline in oil prices impacted exploration activity and tempered demand for pit liners.

Nevertheless, the EFD's new capabilities will add value and enhance customer experience. The division is also in the final stages of completing a new cast line that will help in providing industry disrupting technology to the industrial market segment. This line is expected to be operational in the fourth quarter and Raven has already begun pre-selling a portion of this capacity.

Further, Raven's acquisition of Integra Plastics, Inc. (Integra) in 2014, expanded the EFD's production capacity, broadened its product offerings and enhanced current converting capabilities. It is also expected to help in offsetting concerns regarding the energy market.

South Dakota-based Raven is an industrial manufacturer offering a variety of products for agricultural, industrial, construction and aerospace markets. The company operates through three business segments, namely, Engineered Films, Electronic Systems, Applied Technology and Aerostar.

Raven currently carries a Zacks Rank #3 (Hold). Some better-ranked diversified-operations stocks include Danaher Corp. DHR , CECO Environmental Corp. CECE and Energy Recovery, Inc. ERII . All three stocks carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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