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 trans- mission equipment, GE Oil & Gas has announced plans to invest $60 million in expanding and moderniz- ing its foundry operations in Lufkin, Texas. The Lufkin foundry 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. facility and construct 72,000 sq. ft. of new buildings. Te company also plans to refurbish the remaining fa- cilities at the site in Angelina Coun- ty. Te facility upgrades are planned to create a simplified production process flow, improve employee working conditions and provide GE’s customers with improved quality and delivery schedules. Te Lufkin foundry originally began operating in 1902. While there have been various
upgrades to the plant 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 modern- izing and improving our existing foundry because of the rich history and dedicated, skilled workforce associated with the Lufkin op- eration here in Texas,” said Jerome Luciat-Labry, president of Well Performance Services for GE Oil & Gas. “The goal is to make the facil- ity as efficient 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 expected 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. The facility manufac- tures 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
completed its acquisition of Lufkin Industries for approximately $3.3 billion. The move broadened GE Oil & Gas’ artificial lift capabilities with solutions for a wider variety of well types and technology for production automation and optimi- zation in the drilling industry. GE has invested more than $85 million in the Lufkin business globally since the acquisition.
Shown is an artist’s rendering of the new Lufkin, Texas, casting facility. 6 | MODERN CASTING December 2014
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