ESAB Welding & Cutting Products has committed to build and operate a new manufacturing plant in South Carolina for its line of MIG and sub-arc welding wires, a decision that will mean shutting down a plant in Ohio. ESAB, headquartered in Florence, S.C., is one of the world’s largest manufacturers and suppliers of welding and cutting equipment and welding filler metals.

"We are encouraged by the forecast improvements in the economic outlook and excited about the investments being made in this new facility to support our North American initiatives,” according to ESAB North America president and CEO Andrew Masterman. “The goal is to optimize our manufacturing operations to enable us to better support our customers.”

Masterman said the decision to relocate the operation “is necessary for the continued success” of ESAB North America.

The new plant will be built in Union County, S.C., and ESAB said the move would allow it to improve its manufacturing process. The new, 25,000-sq.ft. location has not been secured yet — ESAB stated it is “currently conducting a due-diligence on the new location” — though it indicated that manufacturing will begin there by the end of 2011, with more than 100 workers.

Manufacturing will continue at the plant in Ashtabula, Ohio, until the new operation is ready. Workers there will be given the requisite 60-notice before the operation closes for good. An ESAB official said the company would begin relocating equipment from Ohio to South Carolina during the third quarter of this year. The new plant also will feature new production equipment said the company plans to fill the new factory with new assembly lines as well.

One source explained that the new plant would cost $19 million, which South Carolina development officials reportedly will cover for the company. South Carolina’s inducements also include tax abatements, which Ohio officials reportedly offered too though without the incentive of a new plant facility.

In its statement, ESAB emphasized the location shift supports its commitment to the to provide quality products with on-time deliveries to the North American market. “ESAB is financially strong, and we believe this investment demonstrates our commitment to the business to make sure we can take competitive advantage of opportunities as the economy recovers," according to Masterman.

ESAB said its goal in establishing the new plant is to expand its commitment to manufacturing best practices. Masterman said, "We are fully committed to support the North American market, which represents about a quarter of ESAB's global revenue. We will, in fact, be better equipped to support our current customer base and better serve their future needs with this new facility."