- The facility is set to open by the end of 2024.
- Capital expenditures for Q1 fiscal 2025 were $50.7 million.
- The facility will supply resins to RPM's segments and external customers.
- The investment is part of RPM's MAP 2025 initiative.
Facility Overview
RPM International is investing in a new production facility in Belgium, aimed at enhancing its manufacturing capabilities and supply chain efficiency. Scheduled to open by the end of 2024, this facility will be managed by RPM's Specialty Products Group (SPG) and will supply resins to all four of RPM's business segments, as well as external customers.
Investment Details
For the first quarter of fiscal 2025, RPM's capital expenditures amounted to $50.7 million, slightly down from $52.2 million in the previous year. The investment in the Belgian facility is included in these expenditures, funded through cash flow generation, debt repayment, and shareholder returns.
Strategic Importance
This facility is the fourth RPM plant focused on intercompany sales, a key element of RPM's procurement strategy to enhance supply chain resiliency. By producing resins internally, RPM aims to lower costs and improve supply chain resilience. The investment also aligns with RPM's efforts to expand its presence outside the United States and increase its global manufacturing footprint.
Operational Goals
The new facility is part of RPM's broader MAP 2025 initiative, which focuses on operational enhancements and cost savings. This investment in Belgium is part of a larger strategy that includes recent investments in facilities in Malaysia and India, all aimed at supporting RPM's growth and efficiency goals.
