Katsa invests in new assembly plant

Twin Disc, Inc. subsidiary Katsa, a Finland-based designer and manufacturer of gearboxes and power transmission components, announced that it is expanding its capacity with a 54,000-sq.-ft. gearbox assembly facility and warehouse in Pirkkala in response to a double-digit percentage year-over-year increase in demand.

Photo caption: Overhead view of Katsa’s new 54,000-sq.-ft. gearbox assembly facility and warehouse that’s currently under construction in Pirkkala, Finland. (Photo: Katsa/Twin Disc)

The new plant, expected to be fully operational by May 2027, brings together gearbox assembly, testing and painting under one roof. The unified design will streamline operations by reducing material handling steps and maximizing production flow. In addition, a dedicated warehouse will support efficient inbound and outbound logistics for components from suppliers and from Katsa’s nearby Tampere manufacturing plant and provide on-site storage.

“This investment gives us the space and production capability to meet our customers’ current needs and positions Katsa for future growth,” said Tomi Koskinen, Managing Director of Katsa. “By 2028, we expect to double our gearbox assembly capacity, and plans are already underway for a phase two expansion.”

Katsa’s growth is driven by demand from multiple industries, including defense, industrial power generation and heavy equipment. While Katsa does not supply gearboxes directly to data centers, it provides components to major engine manufacturers who design and install backup power systems for these facilities.

The company is currently adding 40 employees at its manufacturing operations and its two existing assembly locations in Tampere and will transition 25 experienced workers to the new facility in Pirkkala. By June 2027, Katsa expects to have a total workforce of approximately 250 employees.

The site will feature a new 20-ton overhead crane – doubling the lifting capacity of the current assembly operation – and will enable the company to assemble and test larger industrial gearboxes. The facility will also include a renewable energy heating and cooling system. Ten geothermal wells, each about 1,150 ft. deep, will provide approximately 98% of the building’s heating and cooling needs.

Construction recently reached a major milestone with the completion of the building’s roof. To celebrate, Katsa hosted a traditional Finnish harjakaiset (topping off) ceremony last week.

“For the past 10 years, Katsa has been in a growth mode,” said Koskinen. “This new facility will increase our gearbox assembly and painting productivity and allow us to continue our upward trajectory.”