Product Development

The Company develops products on its own and in consultation or partnership with its customers. The Company’s Technical Centers and laboratories test product components and completed products to insure high quality manufacturing results, evaluate competitive products, aid suppliers in the development of product components, and conduct controlled tests of newly designed filters, filtration systems and packaging products for particular uses. Product development departments are concerned with the improvement and creation of new filters
and filtration media, filtration systems, containers and packaging products in order to increase their performance characteristics, broaden their respective uses, counteract obsolescence and evaluate other products available in the marketplace.

In fiscal 2006, the Company employed approximately 92 professional employees on either a full-time or part-time basis on research activities relating to the development of new products or the improvement or redesign of its existing products. During this period the Company spent approximately $9,748,000 on such activities as compared with $9,490,000 for fiscal year 2005 and $7,950,000 for fiscal year 2004.

During fiscal 2006, the Company completed its new aviation fuel test facility in Greensboro, North Carolina and its new media development center in Cincinnati, Ohio. The new media development center, known as the CLARCOR Filtration Research Center (“CFRC”), employs four full time researchers dedicated to the discovery, refinement and commercial application of new media technologies. In 2006 the CFRC successfully developed unique nanofiber technology applicable to engine air filters and dust collection cartridges. The Company has placed
orders for specialized capital equipment intended to allow the Company to commercialize dust collection cartridges employing this technology late in 2007.
 

Clarcor has 96 people in R&D and a budget of $9 million