A company spokesperson told ILN late last week AEMI, located in Centralia, would produce and rebuild customized longwall equipment exclusively for Murray Energy. The new venture has an 460,000-square-foot shop facility and a staff of more than 100.
“At a time when the economy is struggling and jobs are disappearing, we are very happy to be creating jobs and having a positive impact on the local economy,” AEMI general manager Mike Yates said.
“We look forward to manufacturing state-of-the-art mining equipment that will continue to enhance the productivity and safety of all of Murray Energy’s mines.”
Murray Energy has already worked for more than 10 years with various companies on the manufacture of custom equipment for its mines. However, with the new division comes a big plan.
“Now, with its own machine and equipment facility, the company will produce a proprietary longwall mining system it has engineered to meet the exacting specifications of Murray Energy’s production processes, and which will be integrated into all of its mining operations over the next five years,” Yates said.
AEMI currently employs 102 skilled staff, including 88 hourly workers and 14 supervisors and managers. As the subsidiary ramps up to full production over the next two years, an additional 34 jobs will be created as the company expands into longwall system hydraulic component production.
Additionally, among AEMI’s long-term plan, is the production of additional mining equipment lines for use by Murray Energy and its companies. That growth could boost the company’s payroll up to around 200.
Murray Energy purchased the facility space, a vacant building previously home to an automotive systems company, last northern autumn. After extensive renovations, AEMI commenced operations June 1 concentrating solely on the construction of its longwall mining equipment; the building and repair of other underground machinery is planned but will come later.
Murray Energy produces about 28 million tons of coal annually from its mines in Ohio, Kentucky and Utah. Its properties include the Century and Ohio Valley No. 6 mines, the Galatia complex, and the New Future and New Era operations.
AEMI: a history
Murray Energy said the momentum to develop an in-house manufacturing facility was spurred by its longtime longwall equipment manager Billy Williams. After working with chief executive Robert Murray for 44 years, Williams said building the company’s own longwall systems “made sense” after years of seeking solutions to the technical challenges of a safe and productive mine.
“Over the years we came to realize that the most efficient way for us to operate would be to build the equipment ourselves, to our own specifications, and we could save money in the long run as well,” he said.
After its plans were compiled last September, Murray was quick to purchase the facility in Centralia. The facility was not only central to its existing operations in the region, but also ideal for heavy equipment production.
Williams told local media last week that the decision also made fiscal sense for the company.
“It will save 40 per cent on … equipment and rebuilds,” he said.
“The important thing is the employees are part of Murray Energy [and] it gives them a vested interest. That really defines quality.”
CEO Murray added to WJDB Radio that the facility had enough of a backlog of work to last until 2014 if the cap-and-trade legislation currently making its way through the US regulatory system did not pass.
AEMI has a contract to purchase a million tons of steel each month over the next two years and, as there is room for additional equipment manufacture to be moved into the facility, it has the capability to produce virtually anything.
