Business Profile: Reinhold Industries

A healthy mix of machining capabilities has helped Reinhold Industries thrive.

Located on an industrial boulevard in Edmonton, Reinhold Industries is again challenged with overcoming the turbulent nature of Canada’s oil and gas industries.

Established in 1974, the company has seen many ups and downs of its primary sector but has found a way to thrive. Marcel Klutke is president of the company, which was founded by his father, Hans, and named after his grandfather, Reinhold.

“We’ve gone from [being] a manual job shop to a CNC production shop,” said Klutke. “With production machining, it’s been generally oilfield-related projects. We do a lot of custom machining for major wellhead suppliers.”

While the oil and gas sector makes up over 90 per cent of the business, Klutke has introduced new capabilities to help the company expand into other markets. That diversification has contributed to the company’s success.

“Over the years we’ve progressed and added new divisions, like coatings. Our coatings division offers Teflon™, Xylan®, molybdenum disulfide, and phosphate, as well as sandblasting,” he said. “We also offer our own product lines from one division and custom machining from another.”

The company has not only expanded its product offerings and capabilities, but also its floor space. Reinhold Industries now occupies a 2.5-acre space with a shop floor of more than 26,000 sq. ft. There are about 38 employees on any given day.

Staying Steady

“We have been around for 41 years, and to say the least, we have experienced a few highs and lows,” said Klutke. “In 2008 and 2009, the downturn was across the board for most industries, but the market returned quickly. This time oil and gas is being hit hard, and we feel this slowdown will be here for a while. We have hopes of a turnaround in the fall of 2016.”

Reinhold, a company that started as a manual job shop, now produces complex parts on CNC equipment for a number of industries.

Klutke said that it’s really anyone’s guess when the market will swing back; however, Reinhold Industries remains steady by continually pushing towards innovation and diversification, offering more product lines and services, and expanding its customer base.

“Being a one-stop shop and offering turnkey products allow our customers to save time and money by simplifying their purchasing needs,” he added.

The manufacturing division is still the primary focus of the company. Troy Brooks, CNC supervisor, explained that about 21 employees work in this division and they have expanded its capabilities.

“Our milling division has three vertical machining centres with a fourth axis on them,” says Brooks. “We have two Kiwa horizontal machines, lathe turning centres with live tooling capabilities and subspindles. In addition, we have a manual department as well as a grinding facility.”

Adding Versatility

Klutke credits the addition of the two Kiwa horizontal machines, distributed by Methods Machine Tools in Sudbury, Mass., for a major increase in productivity. For the most part, the company has had productivity gains of about 20 per cent and as much as 50 per cent in some areas.

“The Kiwas are versatile machines, and having a full fourth axis they have eliminated several secondary operations,” said Klutke. “Depending on the part, the [machines] have eliminated extra steps, making the product more accurate and shortening run times.”

Reinhold Industries added the first Kiwa, the KNH-426X, a six-pallet machine, in 2003. Three years later, a second Kiwa, the KH-45, a 4-axis horizontal machining centre, was purchased. And, Klutke said, the company has been using those machines since their installation for virtually any part.

The multitool carousels provide one of the advantages of these machines. One Kiwa has an 80-tool automatic tool changer (ATC), and the other has a 120-tool ATC. “They are ready to be set up and ready to go at any given time,” said Brooks. “They have reduced our changeover time from job to job exponentially.”

The KH-45, a 4-axis horizontal machining centre, is the second Kiwa machine that adds to the company’s capabilities mix.

Expanding Capabilities

Before adding the two horizontal machines, the company ran jobs through the lathes and vertical machining centres, which worked fine. However, once Reinhold realized the capabilities the horizontal machines provided, he added them to the shop, began taking on more diverse work projects, and eliminated several operations.

The horizontal machines have been contributing to production at Reinhold Industries for about 10 years. “They’ve been great machines for us,” said Klutke. “They opened up our versatility.” He added that they use the machines as much now as when they first bought them and that they enable the company to deliver highly complex parts on time.

“The addition of these machines changed Reinhold forever,” he said. “They offer great diversity and reliability through faster machining capabilities, quicker and easier setups, multipallet setups, reduced cycle times, and very little downtime.”

Klutke continues to look for ways to improve the manufacturing process, shorten lead times, and provide customers with high-quality products. He counts on the extensive lineup of equipment and dedicated staff to ensure that Reinhold is at the top of its game.

“We have a strong core group of employees who have vested themselves in the company,” said Klutke. “They treat it as their own and provide service that goes a long way with our customers. Having knowledge is one thing, but caring about our customers--getting the job done from start to finish--is another.”

A large precision part is completed in one of the horizontal machining centres.