On Nov. 6, GE Oil & Gas said it will invest $60 million to expand and modernize its iron casting foundry in Lufkin, Texas, that provides beam pumping units and power transmission equipment for oil and gas and power transmission production.
Design work is scheduled for this year, while construction will begin in four phases in 2016 and last for about three years, the company said.
The foundry produces about 72,000 tonnes of gray and ductile iron castings each year. About 87% supplies GE’s own Lufkin factories while the remainder is sold to other customers, the company added.
In the 515,000-square foot (sq ft) facility, 30,000 sq ft will be demolished and 72,000 sq ft of new buildings will be constructed, the company said. Facilities at the Angelina County, Texas, site will be refurbished, the company noted.
The foundry began operating in 1902. GE Oil & Gas said that the investment would provide the site with “modern technology and practices to reduce emissions and boost production efficiency in an increasingly competitive global marketplace.”
GE completed its roughly-$3.3 billion acquisition of Lufkin Industries in 2013. The acquisition provided GE with artificial lift solutions for “a wider variety of well types” and drilling technology, the company said, noting that more than $85 million has been invested globally into the Lufkin business since then.
“We chose to invest in modernizing 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.
“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,” he added.
General Electric (GE) provides technology solutions for various industries worldwide. It is based in Fairfield, Conn.
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