WACO, Texas — Seven hundred new jobs are expected to come to Central Texas over the next five years.
VanTran Transformers, a Waco-based manufacturer of oil-filled transformers since 1974, was acquired by California-based MGM Transformers.
The acquisition is expected to expand the facility by 430,000 square feet and create new jobs while retaining its current workforce of 198 employees.
Capital investment for this expansion project is beyond $20 million with construction already underway. Production is expected to start in January 2025.
“MGM Transformers’ selection of Waco as a base from which to expand current operations, enhance production lines, retain and increase its workforce and infuse new capital into the local economy is a testament to Waco’s commitment to a vibrant environment for its residents and its workforce,” Waco Mayor Jim Holmes said.
“We value new businesses coming to Waco, as well as the existing businesses that have made this a great place to live and work. For 50 years, VanTran has been an excellent corporate citizen, and we look forward to MGM being a part of the Waco community," Holmes continued.
MGM Transformers CEO Doug Banty said the company is excited to expand into the City of Waco.
“This partnership between our business and the City of Waco will bring more jobs to the community and [it] gives VanTran and MGM Transformers the opportunity for further growth," Banty said. "We would like to thank the Waco City Council, McLennan County Commissioners, the Waco Chamber of Commerce, and everyone else who helped facilitate this expansion.
McLennan County Judge Scott Felton noted the critical role that VanTran and MGM Transformers play in enhancing Texas's electrical grid systems amid increasing electricity demand.
“Their decision to expand in Waco and McLennan County continues to reinforce the investments we have made in economic development and throughout the community to attract high-quality jobs, grow a skilled workforce and expand the tax base in order to enhance the quality of life for our citizens," Felton said.
MGM Transformers requested support from the community, which could come in the form of phase-ins of property taxes and grants from the Waco-McLennan County Economic Development Corporation. Such types of support would help offset establishment costs.