Omaha Steel Castings Co., Omaha, Neb., announced it will break ground on a $12 million operation in nearby Wahoo, Neb., on July 1.
According to Phil Teggart, president and owner, the new plant is expected to be operational in 18-24 months and eventually replace the company's existing operation. Teggart said the facility will implement new, more efficient equipment and increase capacity.
"We're going to eliminate green sand molding and go to nobake only, "Teggart said. "We’re improving the process layout and anticipate capacity to open up. "Teggart declined to indicate the exact capacity increase.
Omaha Steel has done business in Omaha for 106 years but elected to make the move due to the cost of the project and interest from the Wahoo community. The new 130, 000-sq. -ft. Location is about 30 miles from the current facility and is expected to bring 125-150 new jobs to Wahoo.
"This project has been in the works for several years, " Teggart said. "We currently operate on an area that was farmland on the far west side of Omaha 100 years ago. Today, it is considered midtown Omaha."
Omaha Steel produces carbon and stainless steel castings from less than a pound to 2, 500 lbs. For a variety of end-users. Teggart said a capacity increase was needed to meet increased demand.
"Our business is up substantially,"Teggart said. "In 2011, we were right back to 2008 levels. We anticipate 2012 to be a record year. "
The project manager for the relocation will be Doug Six, owner of Midwest Foundry Consulting, Boone, Iowa. According to Teggart, the new facility will incorporate green technology, energy efficient motors and lean manufacturing concepts.
"We can't have an interruption in the flow of castings to our customers, "Teggart said. "Both operations will function until the new plant is fully capable. "