GE Oil & Gas to invest US$ 60 million in Texas

GE Oil & Gas announced it plans to invest US$ 60 million in expanding and modernising its foundry operations in Lufkin, Texas.

The Lufkin foundry produces industry-leading iron castings used to make renowned Lufkin beam pumping units and Lufkin power transmission equipment.

GE plans to demolish 30,000 ft² of its existing 515,000 ft² facility and construct 72,000 ft² of new buildings. The company also plans to refurbish the remaining facilities at the site in Angelina County.

The facility upgrades will create a simplified production process flow, improve employee working conditions and provide GE’s customers with improved quality and delivery schedules.

“We chose to invest in modernising and improving our existing foundry because of the rich history and dedicated, skilled workforce associated with the Lufkin operation here in Texas,” said Jerome Luciat-Labry, President of Well Performance Services for GE Oil & Gas.

He continued: “The goal is to make the facility 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.

“By having its own foundry, GE Oil & Gas has a strategically integrated supply chain that allows the company to more rapidly meet the needs of its customers, particularly in the fast-growing unconventional oil and gas sector.”

Design work for the project is expected to begin later this year. 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 foundry manufactures gray and ductile iron castings, producing an estimated 72,000 tons of products each year. Approximately 87% of the foundry’s products are used to supply GE’s own Lufkin factories while the remainder is sold externally to other customers.

The modernisation of the Lufkin facility is expected to keep the foundry operating for generations to come and continue to provide jobs in the local economy.

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/07112014/ge-to-invest-in-foundry-operations-in-texas-1771/