DAILY PRESS, Oct. 10, 2014: The promise of international growth in emerging energy markets, and the need to upgrade existing mining equipment, has officials at Liebherr’s Newport News plant prepping for new growth that could include a third production line.

Cort Reiser, Liebherr executive vice president of manufacturing, talks about future growth at its Newport News facility. Photo by Daily Press

Cort Reiser, Liebherr executive vice president of manufacturing, said Thursday that expansion and renovations plans at the 77-acre facility are about halfway complete — costing the firm about $24.9 million.

Reiser was mum on details about the potential third line addition to the plant and the number of jobs it could produce, saying more details would emerge in the coming months.

Liebherr, whose presence in Newport News’ industrial history dates back to 1970, specializes in manufacturing and distributing large-scale mining equipment for various coal, gold, diamond, ore and copper operations across the globe. The firm recently overhauled its two dump truck operations by reintroducing its 600-ton and 433-ton mining dump trucks with new designs and electric drive systems that help steer the massive vehicles.

In February 2013, Liebherr officials announced a $45.4 million expansion to overhaul and expand its Chestnut Avenue facility, ultimately creating 174 to 176 new jobs.

Newport News received $500,000 from the Governor’s Opportunity Fund to help in the expansion, and the company has until June 2016 to meet goals for that grant, according to state economic officials. Liebherr also can receive an $800,000 Virginia Investment Partnership grant if it meets job creation goals by September 2016.

To accommodate the surge to its more than 500-employee workforce, work continues on the company’s 250,000-square-foot warehouse. Contractors are adding offices, restrooms, flooring and racks that will help consolidate its inventory to one location. Reiser said plans also include adding eight new docks to the warehouse to help with the flow of truck traffic at the facility.

Liebherr also completed a major electrical overhaul to its 289,000-square-foot manufacturing plant, and added new crane rails to help lift and handle large equipment. The firm also reinforced roofing at the plant and its corporate offices.

Reiser said while the firm is currently hiring engineers, company officials are hoping to increase its manufacturing workforce by the first quarter of 2015, when plant renovations and expansions are expected to be complete.

“We’re going to do the expansion first,” Reiser said. “We’re then going to follow up with the hiring. As the market has changed, the customers’ needs have changed, and we will adjust to that.”

And with good reason.

Despite improvement, the coal commodity market remains soft, prompting some large-scale global coal mining operations to scale back lease agreements for new operations — and with it the need to purchase new equipment.

“In 2013, we had a huge drop … which absolutely shocked all of us. It was something we were not expecting at all,” Reiser said.

Those effects were felt in Newport News.

Shortly after announcing its expansion plans in 2013, the firm began cutting hours for its workers that June before laying off 65 employees in November.

Conny Luhrs, Liebherr senior marketing communications specialists, admits last year was difficult for the company, but officials see signs that demand is returning as economic conditions improve globally.

“There is a lot of market strategy that you have to look up,” Luhrs said of the firm’s research used to obtain new business. “We’re back in negotiations and having some great conversations.”

Reiser is encouraged by future growth at Liebherr.

“We’re excited about this next phase in our growth,” Reiser said. “We’re preparing for the future, and getting ready to meet the needs of our changing market.”