JACKSON — Consumers Energy Friday signed a $19 million contract with Moran Iron Works, a manufacturer in Onaway in the northeast Lower Peninsula, for fabrication of clean-air equipment for the utility’s power plants.
The agreement is part of Consumers Energy’s participation in Pure Michigan Business Connect, a public-private initiative developed by the Michigan Economic Development Corp., which connects Michigan companies with opportunities to help them grow and expand.
Consumers Energy’s decision to hire a Michigan supplier for this work has allowed Moran Iron Works to expand its metal fabrication operations and create up to 75 new jobs. This work has helped cultivate the only Michigan fabricator capable of supplying components of this magnitude to the energy sector. Moran Iron Works, which currently has 98 employees, previously received contracts from Consumers Energy and its vendors totaling about $43 million for other clean-air equipment projects.
“Moran Iron Works is a Michigan manufacturing success story. Their metal fabrication craftsmanship on clean-air equipment is second-to-none,” said Jack Hanson, senior vice president of energy resources for Consumers Energy. “Our Promise to Michigan includes supporting homegrown companies like Moran and working together to bring value to our customers and our state.” Hanson noted that Consumers Energy is Michigan’s second-largest investor and seventh-largest employer.
“We are very proud of our ongoing relationship with Consumers Energy and this contract demonstrates its commitment to our company and our state,” said Tom Moran, founder and president of Moran Iron Works. “This project provides stability and growth to a region with a workforce that is earnest and able to respond to their needs. Moran Iron Works considers it an honor to be a part of the Consumers Energy team.”
The new contract covers flue gas duct work for Consumers Energy’s J.H. Campbell Complex Unit 3, the utility’s largest coal-fired generating plant located in West Olive. Moran Iron Works has previously provided clean-air equipment for J.H. Campbell Units 1 and 2, and for D.E. Karn Units 1 and 2, near Essexville.
As a result of significant investment, Michigan’s air quality is the best it’s been in more than 20 years, according to a recent public statement by the state Department of Environmental Quality.
“Moran Iron Works is a great story about how MEDC programs can help a Michigan company to grow here,” said Michael A. Finney, president and CEO of the Michigan Economic Development Corporation. “Consumers Energy has been a driving force behind our PMBC initiative from the start and we commend the company for its commitment to growing its business with Michigan suppliers.”
Consumers Energy has doubled to $500 million its commitment to purchase Michigan-made goods and services over five years, from 2011-2016. The utility’s commitment to increase its business contracts with Michigan companies is in addition to the $2 billion annually it now spends in the state. These investments are in customer service, electric and natural gas operations, energy efficiency, renewable energy and environmental stewardship.
Companies interested in learning more about Pure Michigan Business Connect are encouraged to visit the MEDC’s Web site, www.michiganadvantage.org/Business-Connect, or Consumers Energy at www.consumersenergy.com/puremichigan.
Consumers Energy, the principal subsidiary of CMS Energy (NYSE: CMS), provides natural gas and electricity to 6.8 million of Michigan’s 10 million residents in all 68 Lower Peninsula counties.