Kim Lamb/LVN photo
Kennametal officials, along with President and CEO Carlos M. Cardoso, announced a $1.67 million expansion of the company's production facility north of Fallon at a luncheon meeting Monday with community leaders.
The expansion won't increase jobs at the current time. However, Cardoso said it may promote more jobs in the future.
"That will depend on the volume and the impact that we'll see later in the year," said Cardoso. "This will ensure the jobs we have."
Gary Peterson, plant general manager, said currently there are 132 employed workers at the facility.
Cardoso said the plant's current production of tungsten-carbide powder is used to harden steel parts in aircraft engines, oil rig drills and other tools used harsh environments. This allows for more durability.
"It can double the life of a part or in some cases it can make it last 10 times longer," said Cardoso.
Cardoso said the expansion will help maintain a competitive advantage by lowering costs, both internally and to customers worldwide. Improvements will begin immediately with a target date for completion of spring 2007, consisting of primarily the installation of new equipment in existing buildings.
During the luncheon Cardoso praised the company's Fallon employees for their flexibility and get-it-done attitude. He said local workers were instrumental in designing the new addition to the plant, which is about 12 miles north of Fallon. They have also achieved impressive productivity and training goals, he said.
Asked if the current military situation in Iraq or the government is having any impact on increased demand for product production, Cardoso said, "Since we are not the end user, that is hard to tell. However, commercial aircraft production is up, so it's probably a combination of both."
There have been increases in both commercial development and tungsten-carbide powder in recent history, but no way to track if it is in conjunction with the war in Iraq, Cardoso said.
Cardoso said Nevada offers an attractive business climate for manufacturing companies, noting that the government is friendly, the work force is flexible and the tax rates are favorable. He said unions and rigid work rules are making it more difficult to operate in the Northeast.
Cardoso said Kennametal will likely continue to invest in its Fallon plant because it employs some processes that are not used anywhere else in the world.