O.E.M. Remanufacturing Inc. was formed January 1, 2004 as a result of the amalgamation of two companies: Reliable Engine Services Ltd., and Headhunters Diesel Ltd. Together, both companies had a combined 85 years of rebuilding and remanufacturing experience in natural gas and diesel engine components. Core products were blocks, crankshafts, cylinder heads and liners, connecting rods and camshafts. Primary industries served were natural gas compression and railroad.
The amalgamation of Reliable Engine and Headhunters Diesel provided OEM with the platform to enter into a services contract to provide remanufactured Caterpillar engines and power train components to Finning (Canada). This contract would result in a 600% growth in OEM’s business within a few months. A 286,000 square foot facility was planned and constructed to replace existing, inadequate OEM facilities.
Since January 1, 2005, OEM has consolidated operations of 3 plants, including the bulk of the work previously carried out by Finning (Canada) in their Component Rebuild Centre in Edmonton. Currently, OEM’s book of business for Finning (Canada) includes the following Caterpillar components
3500 series engines; 3400 series engines start November1, 2005
- Transmissions
- Torque converters
- Differentials
- Steering clutches
- Pumps
- Piston
- Gear
- Vane
- Fuel transfer
- Motors
- Turbos
- Rollers
- Idlers
- Wheel groups
The booming natural gas sector along with resurgence in the North American railroad industry indicates a growth year for OEM in its legacy business. The new Finning (Canada) business is expected to grow over 125% as OEM moves past start-up and into production stabilization. Physical plant capacity utilisation will be less than 50% by the end of 2006 allowing years of aggressive growth before capacity becomes an issue.
