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HB Test Lab Grows on Demand FromLocal A&D Industry

Element Materials Technology, a global materials testing company based in Amsterdam, has made “substantial” investments in its aerospace-focused division in Huntington Beach, increasing its laboratory space and adding a third work shift.

The expansion efforts are mainly a response to increasing demand from a strong commercial aircraft industry and reflect the solid base of aerospace-related manufacturing operations in Orange County, said Jim Riley, general manager of the local division.

Privately held Element does not disclose financial information. It employs 1,400 engineers and technicians, including 133 here.

The OC unit, which is called Element Hunting- ton Beach, is one of the company’s 40 regional facilities in the U.S. and Europe—a roster that covers a range of business sectors, from automotive to medical device to nuclear energy. They conduct various tests of metals and alloys, along with providing climatic simulations, consulting and various analytics services.

Element Huntington Beach recently leased a 20,000-square-foot property next to its current lab that spans 30,000 square feet.

The new facility allows for increased testing capacity and failure-analysis services, among others, Riley said.

Round the Clock

The added shift will allow for 24 hours of work each weekday and a shift each on Saturdays and Sundays.

The company has no immediate plans for new hires, according to spokesperson Ingrid Nicar.

“Element Huntington Beach has invested substantially [to expand] its capabilities to meet the needs of its customers,” Riley said. “The commercial airline business … has remained strong even during the most recent recession. Airline companies are upgrading their fleets with new fuel-efficient and environmentally friendly aircraft and jet engines. Components for the new planes and engines require testing.”

The local lab holds accreditation to serve Airbus, DaimlerChrysler, GE Aircraft Engines and others—with testing and inspection.

Orange County has long been a hub for businesses in the aerospace and defense industries, a hub that grew through the early and mid-1990s, with major engineering companies such as Lockheed Aircraft Co. and Douglas Aircraft Co. establishing operations here.

Element joined the booming sector when it set up its OC unit in 1982. It had about 40 employees here in its early years. That grew to about 130 after the company started planning for growth in 2000 and made subsequent investments to focus on “the forging and casting industries, which is so prevalent in the Southern California area,” Riley said.

OC has more than 22,700 aerospace and defense contracting jobs, a level that’s been steady for about two years, according to the Business Journal’s latest tally of employment at the 24 largest contracting companies here. Workers primarily make airplanes and parts for commercial and military jets.

The biggest of the bunch, Chicago-based Boeing Co., has operations in Seal Beach and Huntington Beach. The company has about 6,900 jobs here, down about 7% year-over-year in a steady downward trend to cut costs and improve manufacturing efficiencies.

Smaller shops in OC include Garden Grove-based LAM Precision Inc., which employs nine and has about $1 million in annual revenue. The company, run by Paul Lam, makes parts used in Lockheed Martin Corp.’s F-35 jets and Boeing 747s.

OC’s status as a center for aerospace and defense manufacturing and services also has attracted investments from foreign corporations over the years, including Commercial Aircraft Corporation of China Ltd.’s recent buy of a Newport Beach property.

The Shanghai-based entity—formed by China’s State Council and backed by state-owned businesses—paid $19.9 million for a building near John Wayne Airport in a push to strengthen its position in the commercial jets market.

Other deals this year include the acquisition of Hyper-Therm High Temperature Composites Inc. in Huntington Beach by London-based Rolls-Royce PLC. Hyper-Therm makes composite materials it says make turbine engines lighter and more fuel-efficient.

There also is a cluster of companies that make in-flight entertainment systems and software, including Lake Forest-based Panasonic Avionics Corp. and Thales Avionics Inc. in Irvine.

Riley said Element’s place in a “large aerospace manufacturing center” here has allowed the company to tap the local pool of “talented engineers with aerospace experience.”

He said the company also values the proximity to many of its clients.

“70% of [Element] Huntington Beach’s clients are within a 75-mile radius. It is of great value for manufacturers to have a close laboratory to support their operations.”

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