Caterpillar to take over Seguin plant

(Segiun, Texas)  —  Early next year employees of Texas Power Systems at the Caterpillar engine assembly plant in Seguin will become employees of Caterpillar.

“On Monday, Aug. 6, Caterpillar announced it will be assuming operation of Texas Power Systems in Seguin, Texas,” Caterpillar said in a prepared statement for news media distributed on Tuesday. “Caterpillar and Royal Oak Industries successfully partnered to launch the Seguin facility. Caterpillar is now exercising its option to manage the facility as it enters the next phase of mature operations allowing a more seamless alignment with Caterpillar’s overall manufacturing network.”

The change of employers was announced in meetings held throughout the plant on Monday, and the announcement was reported to have been well received by workers at the facility.

The workforce at the Seguin plant now numbers approximately 1,400; however, not all of the 1,400 are employees of Texas Power Systems. Some are employees of suppliers or companies providing other services at the plant, and only employees of Texas Power Systems are affected by Monday’s announcement.

“Caterpillar and Royal Oak Industries anticipate the transition to be complete by Jan. 31, 2013,” Caterpillar’s statement said.

Texas Power Systems is a subsidiary of Royal Oak Industries.

“Caterpillar will continue its partnership with Royal Oak Industries as a supplier of high quality machined parts through Texas Machining Enterprises in San Antonio and Texas Machining Technologies in Schertz,” the company said.

The Seguin plant’s first engine came off the assembly line in June 2010. By June 2011, the plant had produced 25,000 engines and another 25,000 were completed by December 2011.

Royal Oak Industries was founded in 1981 when Pat Carroll acquired Royal Oak Boring, a job shop based in Royal Oak, Mich.

“Over nearly three decades, Royal Oak Industries has grown from a specialized machining job shop into a large machining, complex assembly and finished product supplier for global manufacturers,” ROI’s website says. The company’s relationship with Caterpillar dates to 1994 when it entered into a joint venture to machine Caterpillar cylinder blocks in Summerville, S.C.

By: Bob Thaxton

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