LUFKIN, TX (KTRE) - "It's kind of interesting that a little old company from Lufkin, Texas is buying a company from New York," said Angelina County Director of Economic Development Jim Wehmeier.
They're in Lufkin and in France, Argentina, Canada, Egypt, and now New York.
"Anytime you can acquire a company that has technology and intellectual property that you can build upon and form a competitive barrier to your global competitors, you're positioning your company for growth and protecting it's future," said Lufkin Industries President and CEO John F. "Jay" Glick.
Glick said he's excited about their expansion.
"It's a high-tech company. They make a product that is pretty unique in terms of the global competition that they face. They don't have very many competitors," Glick said.
Lufkin Industries already uses Rotating Machinery Technology's Products, so the acquisition is a complementary product to their Power Transmission division.
"We use their product now in very high horsepower, high energy gearboxes that we make," Glick said.
He hopes for a competitive advantage.
He said, "We're doing our best to keep the company afloat and to position us for better times when the markets improve and we realize it's a very difficult time for our workforce, It's a difficult time for our community."
The new deal offers financial stability to the Lufkin company, and one economic developer is thrilled.
"Although this particular acquisition for Lufkin Industries may not bring direct jobs to Lufkin, now, it does put them in a stronger financial position and with us being their headquarters that's good for Lufkin," Wehmeier said.
Regardless of the economy, when you've been on Forbe's list of top small companies several years in a row, expanding is something to look forward to.
Glick said the new division will stay in New York. He said they are geographically positioned where they need to be and for now they'll stay put.