Fairfield to Make Significant Corporate Investment
Lafayette, Ind. - December 6, 2010 - Fairfield Manufacturing Co. Inc. will make a $53.1 million
capital investment over the next three years at its Lafayette plant. The announcement was made at
a news conference Monday, December 6, at the Lafayette facility, which currently employs 1,032.
The investment comes as Gary Lehman, Fairfield's chief executive since 2003, takes over as chief
executive officer of the Drive Systems business segment of Switzerland-based Oerlikon AG,
which he will oversee from Fairfield in Lafayette.
The Oerlikon Drive Systems segment integrates Fairfield and Italy's Graziano Transmissioni as
well as their 14 production and sales facilities. Besides Lafayette, two are in China, three in India,
six in Italy, and one each in Russia and the United Kingdom.
"Lafayette is benefiting from two significant investments," Lehman said. "One is monetary. The
other is trust in our potential to handle these huge new responsibilities."
Fairfield and Graziano will each continue research and development work and retain their own
brands in the Drive Systems division, one of six owned by Oerlikon AG, Lehman said.
Government leaders were on hand to hail the news.
Lafayette Mayor Tony Roswarski said, "The story of Fairfield in Lafayette is indeed a great one.
And it gets better with every chapter. What began in 1919 as a small gear shop has grown to be a
major force in the industry with worldwide recognition for its products. Our community is indeed
proud that Fairfield began here, grew here, and is now writing a new chapter with Gary Lehman
directing Oerlikon Drive Systems from here."
Calling it "a proud day for Fairfield employees and the city of Lafayette," Roswarski said, "All
this means continued good jobs for hundreds of folks in our community, continued research and
development of new products here in Lafayette, and continued and perhaps even expanded
production as Fairfield meets world market needs. Lafayette hails Fairfield's news today,
welcomes Gary Lehman's added division responsibilities here in our community and awaits the
next exciting chapter in this company's history."
John Knochel, president of the Tippecanoe County Commissioners, asked, "What better way to
show your belief in your workforce, your product line and your location than to make a significant
investment in all three?"
He answered his own question, saying, "That's what we're seeing today as Fairfield counts on its
workers, focuses on its research and development here, and makes a significant investment in its
facility here. It's welcome news for Tippecanoe County. It reflects a great trust in our community."
Lehman said because both Fairfield and Graziano are respected leaders in design, development,
manufacture and supply of gear and drive solutions for mobile and industrial machinery
applications, the integration of the two as Oerlikon Drive Systems will bring a wider range of
capabilities and drive solutions to the global market.
He expects to see increased product development and innovation in product and manufacturing
technologies.
The $53.1 million in new investments comes on top of $47 million made in the last four years, for
a seven-year total topping $100 million at Fairfield.
The $53.1 million in Lafayette is part of a $300 million worldwide investment in the Oerlikon
Drive Systems business segment, Lehman said. "That investment is significant for the future of
Fairfield and is a tribute to the confidence that Oerlikon AG has in the Drive Systems overall
business strategy."
Because of customer demand for nearby production facilities, Oerlikon Drive Systems is also
expanding in-India and China. Fairfield's Atlas facility in India, which makes the smaller range
of gear solutions, will invest $71.4 million to add mid-sized gearing and drive solutions. A new,
$55.4 million manufacturing facility in Suzhou, China, will make, assemble and distribute gear and
drive system solutions for the domestic China market. The remainder of the $300 million will be
shared by other sites.
"Our customers are expanding their global presence by moving into China," Lehman said. "They
are requiring their suppliers to support them in all regions around the world. A decision not to
invest or expand into China would adversely impact our business in Lafayette and Europe because
these customers would find other suppliers willing to follow them and manufacture globally.
We're not going to let that happen."
In fact, Lehman said, "We anticipate that by following and supporting our customers globally, we
will secure a greater share of our customers' business as a preferred supplier, and this will likely
mean more business here in Lafayette, in Europe and other locations as our market and business
shares increase."
Lehman added that, "We do know that a decision not to expand into China and other global
regions would result in our business share shrinking and jeopardizing the future of Fairfield in
Lafayette and the Drive Systems segment in general."
He credited the Lafayette community and support from business and education with the company's
success. "We look forward to maintaining this close relationship and continuing to work toward
making a positive difference in this community," Lehman said.
News that Lehman would stay in Lafayette and led division operations from here was good to hear,
said Roswarski.
"I'm also pleased to see that Gary Lehman, a graduate of West Lafayette High School and Purdue
University, and now a Purdue University trustee, was chosen for this expanded leadership post,"
Roswarski said. "He successfully led Fairfield through some significant challenges the last seven
years. And now he will lead it to greater success, backed by Fairfield's skilled and dedicated
workforce."
About Fairfield Manufacturing
Established in 1919 in Lafayette, Indiana, USA, Fairfield Manufacturing is a global leader and
North America's largest independent producer of gear and drive solutions for off-highway and
specialty industrial machinery. Fairfield moved to its current site in 1952. It has more than doubled
employment since then and expanded facilities several times.
About Oerlikon Drive Systems
Fairfield and Graziano Transmissions, based in Turin, Italy, make up the Drive Systems business
segment of Oerlikon AG.
About Oerlikon AG
Oerlikon AG, one of the world's leading high-tech industrial groups, is headquartered in Pfaffikon,
Switzerland. Including Drive Systems, Oerlikon AG operates six business segments with more
than 16,000 employees at 157 sites in 36 countries.
FOR MORE INFORMATION CONTACT
John Strickland,
Vice President,
Marketing & Strategic Planning,
Fairfield Manufacturing Co. Inc.:
765/772-4207
Gary Lehman,
Chief Executive Officer,
Fairfield Manufacturing Co. Inc.:
765/772-4000
