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Hurco speeds growth, buys Eltee.

Hurco Companies Inc, Indianapolis, N, following an aggressive growth strategy for some time, has just put its plan three years ahead of schedule with the purchase of Eltee Pulsitron Inc, West Caldwell, NJ. The acquired firm manufactures a fine of manual electrical discharge machines (EDM).

The acquisition WM compliment Hurco's existing line of precision EDMS, Agemaspark Ltd, imported from its United Kingdom subsidiary and will accelerate its growth into the EDM market. "In 1989, EDMs comprised approximately 6 percent of consolidated sales, " reports Michael K Campbell. The recently appointed president of Hurco Manufacturing Co., Indianapolis Div, predicts the addition of the Eltee product line will boost EDM sales to as much as 15 percent of Hurco's volume. Mr Campbell will continue to serve as senior vice president, chief financial officer, secretary, and treasurer of the parent company.

The addition also fits Hurco's overall strategy, according to Brian McLaughlin, chief executive officer. The company, best known for its Ultimax machine control, is targeted to fill the machinery needs of low-volume production operations such as tool and die shops, mold makers, and custom job shops.

"One of our long-term objectives always has been to be able to supply all of the machines that such companies use," says J Ted Lancaster, marketing manager. They include knee mills and machining centers, both Hurco product lines, but the small-run shops also are the major users of EDM machines in the US, Mr Lancaster claims. "Over the past year we have initiated a marketing strategy to slowly gain a foot hold in the major EDM areas (Michigan, Illinois, Los Angeles, and the Northeast). The opportunity to purchase Eltee Pulsitron allows us to accelerate our market penetration significantly," he adds. Hurco's plan is to move the company to its Indianapolis headquarters.

In another move to improve its competitiveness, Hurco opened a technical center in Riverside, CA, to speed service responsiveness and provide technical support. Although the operation now includes sales, service, applications assistance, and program training, future expectations include spare parts stocking.

Continuing to eye foreign markets-Hurco says it has captured 30 percent of the manual EDM market in the LJK and made significant inroad in Europe through Agemaspark-the company has been focusing on increasing quality and competitiveness. Mr Campben claims that warrantee costs, based on an index of 100 in 1985, have been pared to 12 by 1989. "To perform in this new global manufacturing game, we must perform at our personal best," Mr Campbell contends.
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Publication:Tooling & Production
Date:Apr 1, 1990
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