Genzink Steel Wins Major Contract
HOLLAND — Genzink Steel has landed a multi-million dollar contract to fabricate steel structures for a Pennsylvania mining company and is adding 30 new jobs to accommodate the anticipated three- to five-year project.
The new award is for the steel chassis of coal shuttle cars for JOY Mining Machinery Company of Franklin, Pa. Mines use shuttle cars to transport coal from a loading or mining machine and to an underground loading point, mine railway or belt conveyor.
CEO Ken Genzink said the JOY contract represents a "significant increase" in business for Genzink and that some of it will be subcontracted to other local machine shops.
Genzink is recruiting now, and its first weldments under the new contract are due in February, said Sales Manager Dick Bouman.
Bouman said the shuttle car business is brand new both to Genzink Steel and West Michigan.
The company also is investing in additional welding equipment, overhead cranes and some heavy-duty equipment to handle the higher volume of work resulting from the contract, he said. Bouman declined to divulge how much Genzink is investing to accommodate the project.
The typical JOY shuttle car weighs about 24,000 pounds and is about 25 feet long, he noted, and Genzink will likely roll out 50 to 60 of them a year. He said the company expects to generate about $3 million in revenues annually over the life of the contract.
"There's a chance we could do a lot more of them. There could be some trickle-down," he said.
Last year Genzink sealed a multi-million dollar, 3-year deal with JOY Mining Machinery's sister company, P&H Mining of Milwaukee, to supply material cut and ready for the fabrication of mining shovels and draglines. Both companies are subsidiaries of JOY Global, considered the world leader in mining equipment manufacturing.
That earlier contract "absolutely" helped boost Genzink's chances of securing the new contract with JOY, Bouman said.
"They said, 'You know, if they love you, then maybe we should, too,'" he quipped.
He said the competition for the new contract was tough and that Genzink battled all summer to get it.
Bouman said Genzink hopes to win other contracts from JOY Global and its subsidiaries in the future.