The Haldex plant at the northwest edge of Iola will spring back to life soon. LOCAL LEADERS hailed the announcement as another sign of progress in Allen County and southeast Kansas. NEGOTIATIONS leading to Catalyst’s announcement have been ongoing for some time. (Editor’s note: Some information for this story came from news releases from Catalyst and local partners who arranged for its move to Iola.)
Catalyst Artificial Lift, LLC, a Gainesville, Texas-based manufacturer and wholesaler of oilfield reciprocating rod pumps, Tuesday afternoon completed purchase of the 150,000-square-foot manufacturing facility. The relocation of Catalyst’s Kansas operations will allow the company to expand its subsidiary in Humboldt, long known as 2 R Tool, from 22 existing positions to 120 employees over the next five years. Five jobs are expected to be added soon after the move, the date — probably by fall — of which will depend on refitting the Haldex structure.
Catalyst acquired 2 R Tool about 15 months ago.
Catalyst’s expansion project is the largest job announcement in Allen County since Russell Stover Candies announced construction of a new plant in Iola in 1994.
The Haldex plant, where brake components for over-the-road trucks and other large vehicles were manufactured since the 1970s, closed in 2011 when its operations were moved to Monterrey, Mexico. The plant’s closing put 160 people out of work.
Gates Corporation, which has leased a portion of the structure the past 18 months, will continue as a tenant.
“Catalyst is very excited to move its manufacturing operation into a significantly larger space in Iola,” said Bruce Jendusa, Catalyst Artificial Lift president. “This will enable Catalyst to increase production of its existing downhole pump products,” as well as expand offerings of oilfield equipment it makes.
“Catalyst feels fortunate for the skilled labor pool to draw from in Iola, and looks forward to becoming a good neighbor in the community,” he said. “This expansion is a cornerstone to Catalyst being able to grow its business.”
Jendusa applauded the Kansas Department of Commerce and local partners for their assistance in Catalyst’s expansion.
“It’s great to see a Kansas manufacturer achieve the success that Catalyst Artificial Lift has,” said Kansas Commerce Secretary Pat George. “The company’s expansion will create a lot of new jobs in Allen County, and I’m excited that Kansas has a business environment that supports such significant growth.”
Kansas, Iola, Allen County and Iola Industries joined together to provide an incentives package, including upgrade of electrical and plumbing systems and $30,000 in direct financial assistance toward additional facility improvements needed to accommodate Catalyst operations.
“Iola is thrilled to have been selected for Catalyst’s expansion project,” said Iola Mayor Joel Wicoff. “It is a top-notch company, and Iola is a top-notch community. We look forward to a long and mutually beneficial relationship with Catalyst.”
Dick Works, Allen County commission chairman, noted the importance of partnership.
“Our state and local partners have worked seamlessly to make this deal a reality,” he said. “The Kansas Department of Commerce, city of Iola and Iola Industries all have been excellent partners in this recruitment effort,” which keeps the manufacturer in Allen County.
Iola Industries President John McRae noted: “This exciting announcement shows that we can successfully adapt as a community to changing situations. The economic landscape is different, but Iola Industries’ ability to work with local partners to make deals happen is stronger than ever.”
Thursday evening, in a special session, Iola council members approved the final portion of incentives that were important in attracting the company to Iola.
They agreed to several things:
— City electric crews will complete all exterior work, including a new transformer, trenching, wire conduit and connection to the Haldex plant. The work, including cost of transformer, will be about $30,000 and will be accomplished in about a week.
Catalyst’s electrical contractor will do interior work.
— Iola will waive 100 percent of permit and inspections fees, and provide expedited plan review.
— City crews will refit some interior plumbing, including removal of a 20-foot-by-20-foot section of concrete and installation of a three-inch floor drain. Concrete removed will be replaced in a slope to the drain.
Cost will be about $4,000 and work will take about a week.
— Iola will provide $15,000 of the cash incentive, Allen County and Iola Industries $7,500 each.
VACANT NO MORE Haldex plant is purchased by Texas manufacturer
