INDUSTRY news
GE Oil & Gas Plans Lufkin Overhaul Seeking to improve and sustain its
manufacturing capabilities to meet the growing demand for oil and gas production and power transmission equipment, GE Oil & Gas has an- nounced plans to invest $60 million in expanding and modernizing its found- ry operations in Lufkin, Texas. T e Lufkin plant produces iron castings used to make Lufkin beam pumping units and Lufkin power transmission equipment.
GE plans to demolish 30,000 sq. ft. of its existing 515,000-sq.-ft. facil- ity and construct 72,000 sq. ft. of new buildings. T e company also plans to refurbish the remaining facilities at the site in Angelina County. T e facility upgrades are planned to create a simpli- fi ed production process fl ow, improve employee working conditions and provide GE’s customers with improved quality and delivery schedules. T e Lufkin plant originally began operating
in 1902. While the facility has made various upgrades throughout its history, this proposed investment would infuse the site with modern technology and practices to reduce emissions and boost production effi ciency in an increasingly competitive global marketplace. “We chose to invest in modernizing
and improving our existing foundry because of the rich history and dedi- cated, skilled workforce associated with the Lufkin operation here in Texas,” said Jerome Luciat-Labry, president of Well Performance Services for GE Oil & Gas. “T e goal is to make the facility as effi cient as possible and help strengthen the competitive position of our business around the world. We are excited about continuing to support manufacturing jobs in the United States and especially here in Angelina County where Lufkin Industries began.” Design work for the project is ex- pected to begin in 2014. As currently
proposed and pending government approvals and permits, construction would be carried out in four phases commencing in 2016. Under that schedule, construction is expected to be complete in about three years. T e facility manufactures gray and ductile iron castings, producing an estimated 72,000 tons of products each year. About 87% of its products are used to supply GE’s own Lufkin factories while the remainder is sold externally to other customers. In 2013, GE announced it com- pleted its acquisition of Lufkin Indus- tries for approximately $3.3 billion. T e move broadened GE Oil & Gas’ artifi cial lift capabilities with solutions for a wider variety of well types and technology for production automation and optimization in the drilling indus- try. GE has invested more than $85 million in the Lufkin business globally since the acquisition.
Nov/Dec 2014 | METAL CASTING DESIGN & PURCHASING | 7
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