CANTON, Ohio, Feb. 21, 2012 /PRNewswire/ -- After securing a
new five-year labor agreement, officials at The Timken Company
(NYSE: TKR) announced they will move forward with a
$225 million investment at the Faircrest Steel Plant in
Stark County, Ohio. With
this investment, the specialty alloy steel manufacturer will
improve productivity, expand its product range and increase
capacity to serve growing demand for Timken® specialty alloy steel
bars.
(Logo: http://photos.prnewswire.com/prnh/20100210/TIMKENLOGO
)
"This is a good day for our customers around the world, for our
company and for the local community," said
Salvatore J. Miraglia, Jr., Timken president – steel.
"We've received great support for our steel expansion from state
and local officials and suppliers, and now our employees have put
the last element in place to make this project a go."
Tuesday's ratification of a new extended labor agreement between
Timken and members of United Steelworkers (USW)
Local 1123 establishes workforce stability through project
construction and startup in 2014. The labor agreement covers four
facilities in Stark County through
Sept. 2017 and replaces an agreement
that would have expired in the midst of the project's start-up in
2013.
"We are seeing growing demand for Timken specialty steel to
support the most demanding energy and industrial applications,"
said Miraglia. "This is the right time to make the kind of
investment that will improve our operating performance while also
expanding our capacity and size range for these products. Combined,
that will strengthen our ability to serve these important
industries and position the business for continued profitable
growth and greater shareholder value."
A new ladle refiner and large-bloom continuous caster are
central to the productivity gains from the investment. The new
equipment also is expected to increase the Faircrest operation's
shippable capacity by 25 percent and enable the production of
a broader range of large-diameter bars.
"We have a highly skilled, capable workforce committed to
continuous improvement," said Thomas D.
Moline, vice president of steel manufacturing. "Our
team understands what it takes to make custom-melted, high-quality
alloy bars and tubes that meet our customers' exacting
metallurgical requirements. This investment, which is the
largest since opening the plant in 1985, builds on those skills to
improve our productivity, while giving us the ability to offer even
more to the customers who rely on us for their own success."
Timken, known for the reliability of its power transmission
products that include bearings, gears and related components, cites
its century-long steelmaking expertise as a key competitive
differentiator. In 2011, the Timken steel segment melted
1.7 million tons of raw materials to generate $2 billion
of sales of its custom-designed steel. To further productivity and
growth, the company invested more than $200 million in its
steel operations in northeast Ohio
in the last five years. The most recent of those investments
included a $35 million high-volume in-line forge press at the
Faircrest rolling mill, which is under construction, and
$50 million in capital improvements at its Harrison and
Gambrinus steel plants.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com) keeps the world
turning with innovative friction management and power transmission
products and services that allow machinery to perform more
efficiently and reliably. With sales of $5.2 billion in 2011 and 21,000 people
operating from locations in 30 countries, Timken is Where You
Turn® for better performance.
Contacts - Media: Dan Minnich,
Ofc: 330.471.7760, dan.minnich@timken.com;
Investors: Steve Tschiegg, Ofc:
330.471.7446. steve.tschiegg@timken.com, The Timken Company.
SOURCE The Timken Company