MEC Plans $30 Million Expansion of Metal Fabrication and Coating Plant

en.Wedoany.com Reported - Mayville Engineering Company (MEC) announced the completion of its acquisition of a metal surface treatment plant in Thomson, Georgia, and plans to invest $25 million to $30 million in phases through 2028 for asset acquisition, facility renovation, and production equipment configuration. The facility covers a building area of approximately 12,800 square meters and currently has electrocoating and powder coating production lines. After renovation, metal processing and fabrication capabilities will be added, and it is expected to generate approximately $50 million in new annual revenue capacity by 2028.

The acquired facility is located at 1048 Superior Way in Thomson. The existing production facilities include an electrocoating line, a powder coating line, and an on-site wastewater treatment system, and the corresponding environmental permits have been obtained. MEC plans to retain the existing employees and add metal fabrication and processing equipment at the site, expanding the existing surface treatment facility into a comprehensive plant with simultaneous metal processing, fabrication, and coating capabilities.

Facility renovation and equipment investment are planned to be implemented in phases from 2027 to 2028. The new manufacturing capabilities are expected to begin contributing revenue in 2027 and gradually expand as production facilities are commissioned and customer projects increase. MEC also plans to further decide whether to increase investment in metal processing and fabrication equipment at the site based on regional customer demand.

The project primarily targets the data center and critical power equipment markets. MEC disclosed that, as of the announcement date, the total eligible potential projects in this business area exceed $125 million, and approximately $90 million in new project orders were secured in the first half of 2026. The company plans to use the new site for metal structural component fabrication and surface treatment business for related customers.

The project investment will use the company's existing liquidity. MEC has set an internal rate of return target of no less than 15%. The company expects that this acquisition will not have a material impact on 2026 net sales, adjusted EBITDA, or free cash flow. After the production capacity is built, this base will constitute new production capacity in addition to the company's existing annual revenue capacity of approximately $850 million.

The project investment estimate published by the State of Georgia is approximately $26 million, and it is expected to create 140 new jobs, with recruitment planned to begin in 2026, covering production operations, technical, equipment maintenance, quality control, and management positions. Local coordination related to the project involves organizations such as the McDuffie County Development Authority and the Georgia Department of Economic Development.