Server: Netscape-Enterprise/2.0c Date: Fri, 21 Nov 1997 00:37:19 GMT Accept-ranges: bytes Last-modified: Mon, 22 Sep 1997 13:51:29 GMT Content-length: 3439 Content-type: text/html LUFKIN Industries Foundry Division

INDUSTRIES, INC.


Foundry Division News


It seems the only constant in today's dynamic marketplace is change. At LUFKIN, we are
continually striving to redefine ourselves to address current and future Customer requirements.
This involves operations, information technology, and employee training and involvement. 
The following current issues describe some of our efforts.

No matter how well trained a workforce, the better the available equipment the better chance 
they have to perform. In March 1997, LUFKIN brought 2 new 10 metric ton, 7 MegaWatt
Inductotherm Coreless Induction Melting Furnaces on-line.  This $3.8 million state-of-the-art 
installation has allowed us to melt with such low residuals that we are pouring ASTM A536,
60-40-18 ductile without the typical annealing heat treat operation in casting sizes well over 
5,000 pounds and section sizes over 10". All physical and chemical properties are being 
achieved and in many cases, being certified to individually serialized castings.

We also received a commitment from Corporate for capital to expand and upgrade our Large 
Casting Facility (LCF) molding sand system. This will include upgrading to computer 
controlled acid-resin mixing, additional sand coolers, a vibramill and an additional shakeout. 
This will bring the LCF sand system up to the standards currently run in our Main Bay Facility 
(MBF). We expect to achieve an additional 20 to 25 large molds per day in conjunction with the 
improved performance.

In August 1997, LUFKIN also embarked on a major project to migrate from our current 
computer systems to the BAAN ERP software.  This state-of-the-ad project will not only address 
the Millennium 2000 problem with the existing system, but will also allow us to take advantage 
of new technologies not available under our current system. This project will involve 
replacement of all manufacturing control systems, financials, payroll and human resources. 
Projected completion is slated for August 1, 1998. We have already contacted some of our 
strategic Customers and will be including their input and comments. We will also work to 
integrate our system with Customer systems where appropriate.

As you can see, LUFKIN not only recognizes change but also embraces it. We want to say 
"Thanks" to our Customers for the opportunities they have provided and the continued 
confidence and reliance on LUFKIN as a valued supplier. If you are not already a Customer of 
LUFKIN's Foundry Division, we invite you to contact us to see how you could join our growing 
family of satisfied customers."

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