A Hauppauge manufacturer of power supplies and X-ray generators is expanding its operations in China and Germany, officials said.
Spellman High Voltage Electronics Corp. is constructing its first office and factory in China, which will be nearly double the size of its rented facility there. The 150,700-square-foot building in Suzhou is expected to open next spring.
The Asia-Pacific region accounted for 40% of Spellman’s $228 million in sales last year. The company is forecasting "a substantial increase in the current fiscal year of over $275 million," said company spokeswoman Suzanne Muller.
Regional hub in Asia
The new building should "accommodate our needs for at least the next five years," she said, adding it will serve as a regional hub with engineering, manufacturing, sales and service departments. She said at least 165 people will work there.
Spellman has expanded seven times in China since opening a customer service office in 2004. The company’s products power luggage screening machines at security checkpoints in airports, CT scanners in medical offices, equipment used to make computer chips, and fiber-optic cable repeaters on ocean floors used for telecommunications.
The new building "will provide the necessary space to expand our product development and operations capacity to meet the needs of our valued customers in China and the Asia-Pacific region," said CEO Loren Skeist, a medical doctor whose family owns Spellman. The company also serves Asia from offices in Japan, South Korea and India.
The China expansion won’t affect Spellman's Hauppauge office and factory space, which also is undergoing a modest expansion with help from the Suffolk County Industrial Development Agency and New York State.
However, the company spokeswoman said some manufacturing now done in Matamoros, Mexico, will shift to China to free up space in the Mexican facility for additional manufacturing. In 2014, the company closed a factory in Bohemia and moved the work south of the border, leading to the loss of nearly 50 local jobs.
Growth and jobs
Separately, Spellman has moved into larger space in Bochum, Germany, where it makes X-ray generators used in health care. The company purchased K&S Rontgenwerk Bochum in 2012 and renamed it Spellman GmbH.
Spellman employs nearly 2,400 people worldwide, including 312 in Hauppauge. It’s now trying to fill 42 local openings in engineering, information technology and other areas, the spokeswoman said.
The company is paying for a laboratory for the new power electronics program at Stony Brook University’s College of Engineering and Applied Sciences in hopes some of the students will eventually become employees. The donation is over five years and university officials said the lab will open in the fall.