In the mid-90s when the American building products company Masonite commissioned Jaakko Pöyry Consulting to find a suitable 100-acre greenfield site for a door facing facility “somewhere in Europe”, the residents of the small town of Carrick-on-Shannon, Co Leitrim had their prayers answered. The town and its surrounding areas had not seen any major industrial development and this, combined with a decline in traditional farming had depressed the local economy.
When Masonite Europe arrived on the scene, however, it proved to be a catalyst for the development of the region, creating a confidence that has pulled in other investors. Carrick-on-Shannon is now one of the fastest growing towns in Ireland.
Construction of the plant started in 1995, the two 14-daylight presses swung into production in 1997 and 1998 respectively, and, in the words of its managing director Jim Hoey, “we’ve been growing and filling the capacity of the plant year on year”.
At that time Masonite was owned by the American giant, International Paper, but when the latter divested some of its non-core businesses in 2001, Masonite was eagerly snapped up by a Canadian company – which just happened to be its own biggest customer, Premdor.
As ownership moved north of the 49th parallel the combined companies changed their name to Masonite International Corporation – an acknowledgement of the strength of the Masonite brand name.
Jim Hoey is clearly delighted: “Masonite has a very good track record of product innovation and Premdor has knowledge of sales, marketing and the development of doors and the door industry. The marriage has been a very good step forward for the company.”
The acquisition has brought with it an appreciable culture change. “This new organisation is more entrepreneurial and less restrictive,” said Mr Hoey. “The senior management team is compact and focused, enabling faster and better decision-making. In addition, the focus is very much on a smaller range of products but with a global reach.”
Changes in the product range are at an early stage but as the Premdor management at the corporate development centre have been “aggressive” in terms of demanding variations on existing products and the development of entirely new products – wood tone doors to match wood flooring, for example – these changes will inevitably come. “You won’t find Masonite wanting in terms of coming forward with innovative product introductions,” said Mr Hoey.
The reason he’s so confident is that he’s backed by a robust research and development programme. “We believe it’s the only way forward,” he said. “Not just new products, but new processes, different ways of introducing different raw materials into the existing process, looking at best practice in terms of equipment and optimising processes.”
Demanding market
R&D in Europe will continue to be driven from Ireland because the European market is so different to that in North America – and 95% of Masonite Europe’s products are exported to Europe, north Africa and the Middle East. “The European market is very demanding so we’ve got to be at the cutting edge of technology to satisfy all the markets we service. In this regard we are supported by our R&D centre in Chicago which is the largest facility of its type in the industry” said Mr Hoey.
Of course, the technology is only as good as the people who operate it and Masonite has earned the reputation of being an excellent employer. It currently has 285 staff on its books, 40% from Co Leitrim itself, 50% from adjoining counties and 10% from around Ireland. It is not only a key employer in the region but a very popular one too, prompting locals to say, “It’s easier to get into heaven than to get into Masonite”.
“At start-up we were very selective in terms of the people we recruited into the organisation,” said Mr Hoey. “We have a very strict screening procedure because the process is highly technical and we felt it was necessary to recruit and retain the right people.
“Once we had them on board, training was the key factor and the first 100 employees here received six months continuous training in the classroom. The training has paid off because that group is the core of the company today.
“What’s really wonderful is that most employees who came in fairly young, 18-year-olds with no industrial experience, are now keen contributors and are responsible for the running of a very capital intensive operation.”
Sound training is such an integral part of Masonite’s business philosophy that it often goes the extra mile – or 50 – to bring it to its employees. “If young people want to get on but can’t go to university, they go to night school,” explained Mr Hoey. “But if you’re working in a rural area and doing a night shift, that’s very difficult.
“We talked to Sligo Institute of Technology, 50 miles away, identified 20 people here and got the institute to come to us and hold a course here at night. At the end of three years our employees end up with a certificate in manufacturing engineering. This is another Masonite innovation and I like to think that other companies will latch onto it.”
While production output is a closely guarded secret, as is turnover, Jim Hoey confirms that production is running at 80% of capacity at the moment. “We continue to invest heavily in plant and equipment on an annual basis. One project currently under evaluation is the replacement of our biological treatment plant with membrane filtration technology at a cost of €2.7m,” said Mr Hoey.
The news has delighted the Environmental Protection Agency and Jim Hoey alike: “It will give us increased flexibility in water treatment and it’s a vote of confidence in our business in Europe,” said Mr Hoey.
Process improvements
He is also confident that improvements can be made in the process itself, whereby capacity can be increased without major capital expenditure. “We have made significant improvements in reducing press cycle times and increased speeds on our finishing lines.”
The plant consumes in the region of 140,000 tonnes of wood residues each year and sources this from four suppliers within a 50-mile radius. About five days supply is stored under cover to help eliminate dust excursions. Only clean chips with little or no bark are deemed suitable for the production process.
‘Butt’ chips are used in the heat energy plant, as is waste wood and the hot gases generated are used to heat the oil for the presses and to dry the wood fibres.
Masonite, under its new lateral-thinking management is seeking ways to add value to this process. “We’re looking at other areas where we can generate cash and combined heat and power is something we’ve been investigating – our electricity bill is €3.5m a year,” said Mr Hoey. “We’re also looking at ways of using the ash waste from the heat energy plant as a nutrient. In addition, we burn the sludge from our treatment plant in the heat energy plant.
“Over the years we’ve built up an expertise in safety and environmental issues,” he continued, “and there’s no reason why, in the future, we can’t look at acting as consultants. Nothing is ruled out. It’s just part of the entrepreneurial spirit of this new company and that, together with a highly skilled workforce, is what will win the day in increasingly competitive times.
“We’re seeing some growth [in the market] but we’re also seeing more competition,” said Mr Hoey. “Chinese, Korean and Australian products are finding themselves in Europe and we believe we will see an impact from the new facility in Rumania.
“Competition isn’t new, of course, but it does mean that we have to be very conscious of our customers and the level of service we provide. Internally, cost control is critical.
“We’re not overly concerned [by competition] but we’re conscious of it and we’re large enough to be ahead of the posse. Having gone through a start-up, with all the issues we’ve had and having developed our people, our markets and our products, we’re very bullish under the Masonite International banner in terms of going forward, filling the capacity and growing the business in Europe.”
