Paul Mueller Co. breaks ground on $22M expansion

Amid sweltering summer heat, Paul Mueller Co. (OTC: MUEL) officials broke ground Aug. 26 on a multimillion-dollar expansion project at its Springfield headquarters.

The groundbreaking ceremony, which included Gov. Mike Parson among state officials in attendance, was held outside on the future construction site near the corner of Phelps Street and LaFontaine Avenue. Dozens of employees at the 84-year-old stainless steel manufacturing company also were present for the kickoff of the $22 million expansion work that is expected to create 133 jobs, according to officials.

The new production facility, which will increase capacity for the assembly of large production modules, will add more than 100,000 square feet of space, including 60,000 square feet of clear-span, climate-controlled production area, according to a news release. The facility will be at the northwest portion of the company’s 1600 W. Phelps St. campus, which sits at the intersection of Kansas and Chestnut Expressway.

“It will provide a column-free open manufacturing space where we can assemble and test larger systems for our pharmaceutical, food, beverage and chemical customers,” said Mueller Co. President and CEO David Moore, in the release. “Our co-workers have made this possible by safely providing increased value to our customers, resulting in the largest backlog and highest profitability in our history. The facility will also expand product development and training capabilities to support our growth.”

After the ceremony, Moore said construction should begin immediately and expects the company will be operating in the building by next fall. Ross Construction Group LLC is general contractor on the project and architect is Buxton Kubik Dodd Design Collective.

“I would imagine the building will be complete in September [2025],” he said. “We’re building this building for a handful of product lines. Our pharmaceutical product line will probably move most of their production into it. We make large modules for pharmaceutical customers and that will free up more space in our tank shop for our other tank-based product lines.”

Taking the stage as temperatures swelled to 95 degrees, Parson joked that common sense wasn’t prevailing for him as he was wearing a blazer during the ceremony. Having been to around 20 different countries since becoming governor, he said some of his proudest moments are when he’s on one of those overseas trips and sees equipment made in Springfield, such as Mueller Co.

“I see those tags on there and I think, yep, I know right where that came from or who the people were that built it and what they’ve done,” he said. “$22 million, however you cut it, is a lot of money that people in this company are going to invest. I guarantee you the only reason they’re investing it is because all of you out here, you workers, is the only reason they’re doing that. Because if you’re not putting out the product and they’re not making money, they’re not investing that kind of money here in southwest Missouri.”

State assist
According to the release, the company is set to receive benefits from the Missouri Works program, which awards withholdings or tax credits in exchange for job creation. It also is receiving assistance from Missouri One Start, a division of the state Department of Economic Development that assists businesses with recruitment and training needs.

Michelle Hattaway, DED director, said at the groundbreaking that the expansion announcement is just the latest chapter of Mueller Co.’s long history of commitment to excellence in manufacturing.

“We’re excited to continue to follow along with your success story as you expand capacity for the assembly of large production modules,” she said, adding her state department also is proud to continue partnering with the Springfield-based company as it grows. “We say it all the time that economic development is a team sport. DED works hard to create an environment that encourages economic growth by supporting our state’s business and diverse industries, strengthening our communities, developing a talented and skilled workforce and maintaining a high quality of life. But no way could we accomplish these things without the tried-and-true concept of teamwork.”

Officials declined to disclose details of the economic incentives for the expansion project. However, Moore said the company’s planned addition of 130-plus jobs because of the expansion will likely be gradual.

“As the completion of the building nears, we’ll be trying to ramp up early,” he said.

Growth ahead
Mueller Co. ranked No. 4 on Springfield Business Journal’s list of the area’s largest manufacturing employers, published in June. The company reported 925 employees with a local workforce of 650. Officials said its current Springfield headquarters comprises 703,000 square feet and globally it reached nearly 1.5 million square feet under roof, which includes manufacturing and sales operations in Iowa, the Netherlands and Vietnam.

Counting the newly announced building and a $4 million, 11,000-square-foot facility expansion in Springfield of its component products division – which the company broke ground for in November 2023 and remains under construction – the headquarters campus will grow to 814,000 square feet. The components division expansion is expected to wrap by year’s end and will have a second phase, but details remain under development, according to spokesperson Denise Silvey.

The groundbreaking comes a few weeks after Mueller Co. reported its second-quarter financial report. Its second-quarter net income finished at $6.8 million, a 41% increase from the same three-month period in 2023.

The financial report also noted its backlog this year is $187.3 million, as of June 30, compared with $106 million on June 30, 2023. The majority of the total is in the U.S., where backlog is $181.2 million.

The company’s over-the-counter stock on Aug. 26 hit a 52-week high of $150 per share, as of press time. The stock’s 52-week low is $47.03 per share.

Moore, who has led Mueller Co. since 2011, said increased demand from customers and most of its product lines have put the company in a position for expansion.

“I think this is the most interesting time in our company since I’ve been president,” he said. “We have the best financial performance. We’re engaged in more product development and more training and have a much deeper level of education among our co-workers of financially how the company works. And it’s just opened up possibilities for us that were not able to be imagined in 2011.”