CANTON, Ohio, Aug. 12 /PRNewswire-FirstCall/ -- The Timken Company (NYSE: TKR) announced that it will invest approximately $50 million in its steel operations in Canton, Ohio. Slated to begin this year, the investment is for the installation of a new intermediate finishing line at the Gambrinus Steel Plant and expansion of the steel lay-down yard at the Harrison Steel Plant's small-bar mill.
Timken's Steel Group has had a significant increase in demand across all markets, and 2010 sales are expected to increase by 70 to 80 percent compared to 2009. "The investments have the goal of both meeting demand and continuing to improve the long-term competitiveness of our operations," said Sal Miraglia, president – steel for Timken.
Gambrinus Steel Plant Intermediate Finishing Line
The installation of a new intermediate finishing line at the Gambrinus Steel Plant, the larger of the two projects, will improve manufacturing competitiveness with a more efficient operation that incorporates the latest technologies and employs lean processes. It will be built in a combination of unused and repurposed buildings on the Gambrinus site. The line, which will more efficiently handle both bar and tube products, ultimately will replace existing batch-type finishing processes at the plant when it is fully operational in 2013.
"The more automated, continuous line will streamline our operations, improving manufacturing effectiveness as well as providing future marketplace opportunities," said Miraglia. "Safety and productivity will also improve, by minimizing unnecessary handling."
Harrison Small-Bar Mill Lay-Down Yard
The small-bar mill at the Harrison facility, which opened in 2008, continues to increase its output in response to demand, requiring additional space in the laydown yard outside the mill for both finished and semifinished steel. Expanding the yard necessitates the demolition of several adjacent, unused buildings. This project will be completed by year end.
Continued Investment in Steel Operations
The Timken Company has long focused on improving productivity and developing new, competitive products and processes. Over the past four years, the company has invested $200 million into its steel operations to strengthen its competitive position, and ultimately support long-term growth and jobs. Those investments include two new heat-treat lines and a scrap logistics system added between 2006 and 2007, a long-length tube line added in 2008 and a new small bar mill, which was commissioned at the Harrison facility in 2008.
About The Timken Company
Timken's Steel Group produces some of the cleanest, highest-quality steels in the world for the most demanding applications. The majority of steel manufactured by Timken is custom melted to the customer's chemistry and manufacturing specifications in solid round or square bars, seamless tubes or semi-finished parts.
The Timken Company (NYSE: TKR, http://www.timken.com) keeps the world turning with innovative friction management and power transmission products and services, enabling its customers' machinery to perform more efficiently and reliably. With sales of $3.1 billion in 2009, operations in 27 countries/territories and approximately 17,000 employees, Timken is Where You Turn® for better performance.
Media contact: Lorrie Paul Crum, Global media relations & strategic communications – 330.471.3514 (office); 330.224.5021 (mobile); [email protected]
Investor contact: Steve Tschiegg: Investor relations & capital markets – 330.471.7446; [email protected]