A partnership to build components for Caterpillar will mean a division O’Neal Industries will hire 20 to 25 new employees.
- Bryan Davis
- Reporter- Birmingham Business Journal
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O’Neal Manufacturing Services is expanding its business partnership with Caterpillar Inc. to provide a variety of fabricated parts and components for Caterpillar’s new Small Track Type Tractor.
The announcement includes a $5 million investment by OMS-Birmingham in equipment designed to meet Caterpillar’s current and future needs, and it will result in 20 to 25 new jobs.
The project was spawned by Caterpillar’s efforts to reshore – or move operations back to the U.S. from overseas. As part of that initiative, Caterpillar is moving production of the tractor from Japan to Athens, Ga. O’Neal will provide parts and components for the tractor.
O’Neal Steel has been a partner with Caterpillar since 1992 when the Birmingham company was awarded Caterpillar’s designation as a Preferred Steel Service Center. O’Neal Manufacturing Services was created in 2012, strengthening the partnership.
Caterpillar plans to bring one of the new bulldozers to Birmingham next week for inspection and display at the Birmingham plant.
“Caterpillar’s main objective in coming to talk with us, and bringing this dozer to Birmingham, is to drive quality,” said OMS strategic account manager Jeremy Gutman. “They want to help ensure that all the individuals who are making these parts understand where they go, what they do, and why the required tolerances are so tight. They want the people behind the parts to take ownership. Seeing a finished product up close and personal is a very effective way of doing that.”
OMS-Birmingham will employ around 100 people after the expansion.
Bryan Davis covers real estate, retail and manufacturing for the Birmingham Business Journal. Click here to follow him on Twitter.
Source Article from http://www.bizjournals.com/birmingham/news/2014/05/09/oneal-caterpillar-deal-to-result-in-5-million.html
