The company should be able to increase its current employment of 68 to 125 or more within three years., said Morgal Vice President and General Manager Rodney Hickman.
Morgal laid off 32 workers over the past year as a result of the slumping economy, so those workers will be called back, he said. New employees will be added as needed.
On Monday, Aug. 31, Morgal received a 40 percent, six-year job creation tax credit from the Ohio Department of Development valued at approximately $27,570.
Capital investment by the company to support diversification is expected to exceed $2 million over the next three years.
Morgal will also receive $50,000 from Job and Family Services of Clark County as part of the federal stimulus funds allocated for worker retraining.
The funds will be used to educate employees on robotics equipment recently installed.
Morgal was able to secure a contract to produce treadmill frames for a company in the fitness industry.
Morgal’s engineers made the existing frame easier to manufacture, removed costs and improved structural design.
“They were extremely pleased with testing results which allowed Morgal to move into an additional product line with the company,” Hickman said.
In the agriculture industry, the company will produce a number of component parts for use on commercial and consumer equipment.
Morgal also received regained a contract it had lost to an overseas competitor.
About four years go, the Ohio company lost business manufacturing parts for a lawn and garden customer to a company in China. But with significant improvements in efficiency and production capabilities, Hickman said, production of a pulley has returned.
“These products will open doors for us to expand our product lines within that industry,” said Dwight Kent, president of McGregor Metalworking Companies, parent company of Morgal.
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