Finning International announced last week that it is investing U.S. $48.3 million in a new component rebuilding center being built in Edmonton by OEM Remanufacturing Co. The facility will be completed in January 2005. OEM will be independently operated and will add the remanufacturing of Caterpillar components to its current services and product line of industrial engine components.
Commenting on the investment, Doug Whitehead, president and CEO of Finning said: "Today's announcement is consistent with Finning's corporate growth strategy to diversify its activities by geography, industry segment and revenue stream. Through its investment in the new remanufacturing facility, our customers will experience a substantial upgrade in service and product support. By expanding and growing Finning's component remanufacturing capability to serve a wider range of customers we will build greater value for our shareholders."
Gerald McLaughlan is the CFO of OEM and brings a wealth of operational and management experience in business ventures similar to OEM. Most recently, he was the founder and CEO of Phoenix Reman Group, the exclusive North American hydraulic and power train component remanufacturer for several multinational original equipment manufacturers and mining enterprises. In 2001, Phoenix was sold to Deere & Company.
When the new facility is fully operational, OEM will double its size and employ about 300 people.
Associated with this investment, Finning (Canada) announced that it has entered into a 10-year customer services agreement with OEM to rebuild Caterpillar components that Finning (Canada) currently remanufactures in its Edmonton facility.
Edmonton, Alberta-based Finning is No. 16 on the RER 100.