John Deere Reman broke ground Monday on a 120,000 square foot expansion next to its core facility in Strafford. The 280,000-square-foot core facility is where John Deere core parts are shipped to begin the remanufacturing process.
While no new jobs are planned with this $13.5 million expansion, Kevin Schrag, manager of John Deere Reman, said they hope to expand their facilities even more in the future. John Deere currently operates five remanufacturing facilities in the area.
Ryan Campbell, president of John Deere Worldwide Construction & Forestry Power Systems, said the expansion is critical for John Deere in a few ways. It will provide the space needed to store and manage core, which he called "the lifeblood of any remanufacturing business." Core is used and worn out material that is returned, disassembled, cleaned and qualified to use as raw material that gets turned into John Deere Reman products, he said.
The new facility will also "drive increased operational efficiency by consolidating outside warehouses and improving the overall flow of materials in our remanufacturing process," Campbell said.
Schrag said the expansion is a great investment for John Deere, for remanufacturing and for the community. He said what the project does more than anything is "it provides us space to grow, and we have big growth ambitions within Reman globally. All of it's based out of Springfield."
Area leaders are excited about the expansion.
Strafford City Administrator Marti Smartt said the new project is a good sign for the community and the region.
"They have other facilities in the area. The fact that there is a strong regional workforce really makes this possible," she said. "So it is truly a benefit not just to Strafford but also to the entire region as they create jobs."
Springfield Area Chamber of Commerce President Matt Morrow called the company’s decision to expand "an incredible asset to the community" and said "I think the decision that they make, as it's a very competitive landscape, to continue to grow and invest here says a lot about, one, John Deere, but it also says a lot about the cultures and the community and the partnerships that we have here in the Ozarks region."
John Deere Reman employs more than 500 people at its facilities in Springfield and Strafford.
The company remanufactures engines, transmissions, axles, hydraulics, engine components and electronics components. According to the company, the goal is to deliver like-new performance at a lower cost with reduced environmental impact.
Denver Caldwell, vice president of John Deere Afermarket and Customer Support, said reman allows them to get customers, including farmers, back to work quickly and provides them with a cost effective alternative to new parts. He said the savings can be up to 30%.
