MTS Automation expands

By CHRIS VETTER

Journal Staff Writer

NEW ULM -- MTS Automation has experienced tremendous growth since it was founded nine years ago, and Bill Anderson is understandably proud.

Anderson, vice president and general manager, oversees the production and sales of all items made at the New Ulm plant, from motors to cables to amplifiers.

"Everything we make improves productivity," Anderson said. "We make things faster and cheaper."

The company experienced 24 percent growth last year alone, Anderson said. The rapid growth has left its current 29,000-square-foot facility behind Holiday Inn cramped for space.

"It's pretty crowded," Anderson said, pointing out new materials that have recently been shipped from a MTS building in Chaska. "We've already converted all of our training rooms."

Knowing a new plant was needed, Anderson began working with city economic development officials earlier this year on finding a location. Now, a new 75,000-square-foot site at 20th North Street is in the works. Anderson predicts work on the new building will begin this fall.

"Everybody is ready to go," he said. "We're planning to have it done in August (of 2001)."

The new site also could accommodate future growth, Anderson said.

"It's not just expansion, it's room to expand again. We want to grow," he said. "Our hope is that in three, four years, it's not enough."

Brian Tohal, coordinator of New Ulm Economic Development Corporation, is helping MTS Automation design the new facility and structure financing.

"It's a locally-grown business that expanded to an international business," Tohal said. "You've seen some amazing growth in that company in its 10-year life."

MTS is a "strong, stable company with an international presence," Tohal said.

About a third of the 78 full-time MTS Automation employees work in the machine shop, carefully laying wires between magnetic casings. The motors, often small, heavy and expensive, are sold to companies that use the motor to power large lifts or perform small, detailed tasks.

"We supply the electronics that put the power to machines," Anderson said. "If it needs to be moved quickly and precisely, you would use this motor."

Other workers develop and design new motors to specific details for customers. Anderson pointed to one motor in the test shop, explaining it will power a machine that will remove peel from oranges.

In Anderson's view, the possibilities of the use of motors are endless.

"It's everything related to chip manufacturing to circuit boards," he said.

Picking up a smaller motor, weighing 12 pounds that was about a foot long, Anderson noted that the $600 component is rated at one horsepower.

"It's a powerful motor in a small package," he said.

Development of new technology is one reason for MTS Automation's continued growth.

For example, a linear motor, which will slide from side to side, priced at $3,500, will be used in the semi-conductor market.

"This will be a significant growth area," Anderson said. "You can move things back and forth quicker with no wear."

When the company decided it needed a new manufacturing facility, some corporate officials suggested moving the plant elsewhere. However, Anderson preferred to stay in New Ulm.

"It's been a good place to be. Our retention of workers is good and our pay is fair," he said. "It's a good win for New Ulm."