Gehl Company, a worldwide distributor and manufacturer of compact construction and agricultural equipment has launched an $8.7 million expansion of its Yankton, S.D., manufacturing and research and development (R&D) facilities.

The expansion will add additional manufacturing space and equipment to the Yankton plant, which manufactures telescopic handlers and pavers for the Gehl and Mustang brands. It will also expand manufacturing capacity to accommodate manufacturing several models of telescopic handlers under a license Agreement with Manitou BF S.A. of France.

Construction is underway for a 49,200-square foot addition to the manufacturing floor. The project will optimize the Company's manufacturing flow, facilitate new in-house laser metal-cutting capabilities and increase overall capacity to meet the growing demand for telescopic handlers and pavers. A 4,000-square foot addition is also underway to the plant's R&D building to increase the workspace needed to develop and prototype new products.

Gehl also plans to make other improvements to their manufacturing capabilities that will include automated forming, machining and welding equipment.

Gehl business grew at a record pace in 2004 and demand for the company's compact equipment is expected to continue to grow in 2005.

According to William D. Gehl, chairman and CEO of the company, "Our investment in expansion of the Yankton facility is part of our ongoing process to meet the increasing demand for all of our core products and to bring new products to market more rapidly. This will increase our market share and enhance shareholder value."

Source: Yahoo News