The OEM recently held a grand opening of its new manufacturing facility in Keokuk, Iowa, sharing more information in an exclusive NAM interview.
By Donna Schmidt
Supply chain improvements, particularly in a time when mines are demanding quick turnarounds more than ever before, are crucial for suppliers. FLSmidth took this to heart in its plans for the newest facility in its portfolio: a regional manufacturing hub that it strategically located for service to customers in four countries.
FLS’s Ryan Lucas and Todd Moir spoke told NAM that, while the Iowa location may surprise some, the position is perfect for reaching more customers – it is strategically in the middle of North America and has efficient access to the markets of Mexico, Central America and Canada. Low operational costs versus other more metropolitan regions also makes FLS’s decision financially efficient.
The two said the campus, which underwent a significant transformation and renovations to prepare for the OEM’s specific needs, including equipment upgrades and updating both work and office spaces. While FLS had been its leaseholder prior, it purchased the campus when its initial owner opted to sell. As the two noted, the timing was ideal with its ongoing strategy to bolstering regionalized capabilities to add to its North American and Chilean locations.
“Our overall involvement in the community has been substantially good,” Moir noted, referring to the company’s decision to use all local contractor for the renovation and maintenance work. FLS has also added people, with work being performed now at the facility three shifts daily and five days a week. “We are looking to really boost the economy there in Keokuk, in a very small town, because we’re still hiring.”
“We have high ambition goals as a company, and to do that, we really need more people in there to handle the volume of work that comes in,” he added, pointing out that there is still available space to grow production again as it is needed.
Keokuk will serve a split of customers, 80% mining and 20% industrial, and with greater customization and abilities; for example, Moir noted, new hydraulic presses will be able to produce eight times the product at once and give it further production options.
As part of its capabilities are vulcanized rubber and rubber composites, it is also developing a mill liner recycling component to the facility campus based on an existing prototype it already has in South America. The recycling initiative aims to reduce waste by separating rubber from metal, and it plans to implement that element in Keokuk by 2025.
In the meantime, the company has been exploring alternative transport methods for Keokuk, including railway and river barges, to reduce its carbon footprint. Its recycling initiative is also expected to further improve the supply chain for both types of customers since it will realize a constant flow of material being produced.
While Moir and Lucas both note that the company is proud to be targeting Keokuk’s growth in the future as well as making good on its commitment to community involvement. Relations so far have been positive in the Iowa community, and significant mutual economic benefits are core to its plan.
“We are looking to really boost the economy there in Keokuk, in a very small town, because we’re still hiring. We’re trying our best to continue to grow the company there, grow the staff numbers, because we really have high ambition goals as a company – and to do that, we really need more people in there to handle the volume of work that comes in,” Moir pointed out.
“Really, this is also an investment for our customers. We want to be closer and be able to support our markets, right from this location.”