Katolight Quietly Taking Big Steps: Gen-set packager expands product line, facilities, distribution; aiming for bigger role in power generation industry

Diesel Progress North American Edition, Nov, 2001 by Mike Brezonick

For the better part of the last 50 years, Katolight Corp. has earned a reputation as a supplier of custom power generation systems, focusing primarily on the systems in the 15 kW to 2 MW range.

But a lot has changed for the company within the last year or so. Among the most significant events have been:

* A change in the company's ownership structure.

* The construction of a new facility that dramatically expands the company's capabilities.

* The development of a new series of diesel and gaseous-fueled gen-sets up to 400 kW

* A marketing agreement that has resulted in a new range of gen-sets targeting home standby applications.

* An agreement with Encorp to develop a range of "smart" gen-sets for commercial, industrial and ag applications.

* An expansion of the company's distribution network.

"There has been a lot happening here that people probably aren't aware of," said Tom Ferris, industrial sales manager at the Mankato, Minn., manufacturer. "We're in the Midwest, which is kind of a low-key area and we tend not to shout about things from the highest branch of the highest tree.

"But Katolight is moving from being a smaller manufacturer to a company that is really going to play a greater role in this business. We certainly are not out to capture all of the market, but we'd like to have a bigger share and we're doing some of the things we need to do to reach our goals."

Some of those things began at the top, as earlier this year, the company ownership situation changed. While previously held privately by two families that co-owned both Katolight and sister company Jones Metal Products, a metal fabricating company that did some enclosure work for Katolight and other companies, a stock swap has resulted in Katolight being completely owned by the Jacobson family. "It's kind of a realignment," noted Ferris. "Before, Katolight and Jones Metal Products had been owned by the Richards and Jacobson families. Now, the Richards family owns all of Jones and the Jacobsons own Katolight."

Perhaps the most noticeable change at Katolight is actually about three miles away from the company's headquarters. There, in the Eastwood Industrial Park on the east side of Mankato, Katolight has erected a new manufacturing facility and office that will incorporate approximately 62,000 sq.ft. of manufacturing space, along with 20,000 sq.ft. of office space. The company broke ground on the new site in early April and final construction is nearly complete at this writing. The company will maintain some production in the 30,000 sq.ft. plant across the street from the former headquarters site.

"Over the last 10 years the company has experienced double-digit growth," said Ferris. "Based on where we are today and with the infrastructure we've been able to create, it would be very difficult to move to the next step without this type of investment. This new plant, along with what we have now, will just about quadruple our capacity We look at this as really serving our needs well into the future.

"The new facility is certainly going to make us more efficient than we are today. It's a place we can take our customers and really have the facilities to train. In the past, we've been a little limited as far as training, because we'd have to do things off-site. Now we can do it all in-house."

The new plant will also be the primary manufacturing site for the company's new line of diesel and gaseous-fueled generator sets. Christened the PowerPak line, the new units will, when completed, span a diesel range of 15 to 400 kW, with gaseous-fueled units ranging from 25 to 125 kW The PowerPak gen-sets are targeted at a wide range of commercial, ag and industrial standby power applications.

"These are really for all of the applications out there that are not custom," noted Ferris. "We've always been known as a custom manufacturer, but there is need in some applications for a basic generator with a limited amount of accessories. We didn't really make a product like that before and this gives us one.

"And along with that comes, of course, a lower price, quicker delivery and distributors now can have inventory of a product that lets them get product to the customer far quicker than the customized products."

Katolight has recently unveiled the first models in the PowerPak range, unveiling on the diesel side 15 kW, 40 kW, 60 kW and 75 kW units, and releasing 25 kW and 35 kW gaseous-fueled units.

The 15 kW unit is powered by a 1.76 L, naturally aspirated Mitsubishi S4L2 four-cylinder diesel rated 24.7 hp at 1800 rpm, while the 40 kW, 60 kW and 75 kW models are driven by 4.5 L, Deere PowerTech 4045D150/250 engines rated 71, 100 and 113 hp at 1800 rpm, respectively The engine in the 40 kW model is naturally aspirated, while the others are turbocharged.

On the gaseous-fueled side, both the 25 kW and 35 kW gen-sets are powered by GM Powertrain engines. The smaller unit incorporates a 3.0 L, in-line four-cylinder engine rated 43 hp at 1800 rpm, while the larger set is powered by a 4.3 L, V-6 rated 59 lip at 1800 rpm.