By Brenda Showalter, The Republic
bshowalter@therepublic.com
A large area inside PMG Indiana's Arcadia Drive facility sits empty, waiting for a 1,200-ton press that is being shipped to Columbus from Germany.
Outside, earth-moving equipment is preparing the site for a new 4,000-square-foot research and development facility.
Two weeks ago, Gov. Mitch Daniels toured the more than 140,000-square-foot facility undergoing an $11.4 million expansion.
All those signs point to a company on the verge of growth and full of optimism about its future in Columbus.
Even though the auto industry is facing lean times, PMG continues to make parts for most vehicles and is seeing growth in certain segments.
One of PMG's products is a sprocket for the Ford Edge, one of the new "crossover" vehicles (a cross between a car and a sport utility vehicle) that is having strong sales across the country.
Larry Van Epps, PMG Indiana's executive vice president, said the plant runs three shifts a day, six days a week, trying to keep up with demand.
The company also is attracting more customers as they look for cost savings that PMG Indiana products can provide, Van Epps said.
Improving products
PMG Indiana makes powder metal parts and subassemblies for automobiles.
The parts are made using a blend of powdered metals that are pressed into a die -rather than being stamped into the proper shape from a solid, larger piece of metal.
Using powdered metals is cheaper "because the parts need a whole lot less machining," Van Epps said.
After being pressed into a die, components are heat treated in furnaces ranging from 1,700 to 2,100 degrees.
At the new research and development facility, workers will look for ways to improve their powder metal blends to make them denser, stronger and easier to compress and machine.
"We'll be looking at new materials and new applications," Van Epps said. He also said the amount of powder metal products in vehicles is increasing each year. Cars used to have, on average, about 20 pounds of powder metal parts, but now have more than 40 pounds. Inside the busy factory, workers man machines as they make precision parts to meet stringent customer specifications.
Many products are hand cleaned and checked before they are packed and shipped.
Shipments leave the facility, just off of Indianapolis Road, every day, heading straight to automotive manufacturers or their suppliers.
Picking Columbus
PMG Indiana went through some uneasy times recently when a merger changed ownership of the company, formerly known as Diamet.
The company, with headquarters in Luxembourg, has facilities in several countries, but just three plants in the United States: in Columbus, Ohio and Pennsylvania.
The company decided to close its facility in Ohio and make the Columbus plant its only Midwest operation. It also chose Columbus for its North American research and development facility.
Van Epps said Columbus was picked for reasons including that it had a newer facility and more land was available for expansions.
Another key factor, Van Epps said, was the welcoming business environment provided by Columbus and Indiana.
Incentives offered to PMG included up to $1.2 million in performance-based tax credits and up to $50,000 in training grants for workers.
Columbus City Council also approved property tax abatement.
Another plus, Van Epps said, is that the local Ivy Tech Community College offers a great place to provide training for its workers.
Family environment
Van Epps said he believes one of PMG's strengths is its workers, including some who have been at the company since it started production in Columbus in 1989 as Diamet.
"We're kind of a family here," said Van Epps, noting that workers help each other in difficult personal times and socialize over pitch-in dinners.
"I like the people here," said Shane Sullivan, who worked as a machinist and advanced to a second-shift supervisor.
Sullivan also likes the challenges of his job.
"It's a never-ending learning curve. There's always something new every day," Sullivan said.
Kevin Kaplan, a process technician who has worked at the plant for 12 years, also likes the people and job challenges. "I work with some really good people," Kaplan said. PMG Indiana is preparing for some big changes, which can cause some apprehension among workers, Van Epps said.
But as construction continues on the building expansion and plenty of work is available for workers, they see a promising future.
The plant also has room to grow on its 40-acre site, Van Epps said.