Tranex Inc. is in the process of expansion, with the intent of doubling the size of the company.
The Colorado Springs-based company designs, develops, and markets custom transformers, inductors, toroids, and related magnetic components.
The company plans to add 15,000 square feet to the existing 15,000-square-foot building. The pricetag for the addition is estimated to be $1.5 million.
Tranex will use the additional space to expand its manufacturing operation.
When it opened in 1967, the company had three locations, one in Colorado Springs and two in California.
In 1976, the company was bought by Micro Mask, but maintained the name Tranex.
A decade later, when Micro Mask was forced to downsize, current owner Troy Valdez initiated a leverage buyout of the company.
Valdez soon closed the two locations in California, basing the business solely out of Colorado Springs, with some manufacturing done in Juarez, Mexico.
Tranex has 130 employees in its Colorado Springs plant, with an additional 55 employed in Mexico. With the expansion expected to be completed by spring, Tranex will eventually add new employees.
Since Valdez became the owner of the business, serving as CEO, and president, his goal has been to pursue research and development of Tranexs products.
According to Bill Koernig, facilities manager at Tranex, the company has the capacity to manufacture more specialized products, especially in the medical realm, but the cramped space has limited the company.
"With the expansion, we will be able to expand our design capabilities," said Koernig. "Our manufacturing should increase significantly."
In his years at Tranex, Valdez has restructured the material control function, production controls, and the plant layouts in order to produce higher profitability to the manufacturing operation.
The company posted 1995 revenue of $6.8 million. Valdez says he is confident the revenue in 1996 will meet or exceed $8 million.