Tuesday, May 27, 2014

Vigor Absorbing Oregon Iron Works

By Mark Edward Nero

Vigor Industrial has announced that it is merging with specialty manufacturing firm Oregon Iron Works and that OIW will become a wholly owned Vigor subsidiary. OIW and Vigor say they agreed to terms on May 20 and expect the merger to be finalized before the end of June.

“I’ve spent the last 40 years building Oregon Iron Works into a company with some of the country’s most advanced fabrication capabilities, and we’ve been looking for ways to evolve to the next level and compete in a broader market spectrum,” Terry Aarnio, OIW Chairman of the Board, said in a May 21 statement regarding the transaction. “Vigor builds and repairs ships. OIW builds boats and other projects with complex fabrication, machining, and integration requirements. 
Vigor has some of the West Coast’s largest shipyard industrial facilities and great marine industrial workers.”

OIW’s unique fabrication abilities combined with Vigor’s shipbuilding, heavy lifting and marine launch capabilities is expected to allow the company to complete large-scale, complex projects that neither company could do alone, according to the two companies.

“This combination positions the company to meet upcoming demand from various industrial and marine sectors,” Vigor CEO and Owner Frank Foti said. “Not only will diversification allow us to better weather the ups and downs of the marine industry, incorporating good fabrication genetics from non-marine sectors is great way to achieve world-class shipbuilding standards in the US.”

“It’s industrial evolution, and it’s what our economy needs,” Foti said. “We’re doing everything we can to build and sustain family-wage industrial jobs.”

The combined company is expected to employ about 2,300 people in Alaska, Oregon and Washington.