Soaring demand for wireless monitoring systems at oil production sites has led Emerson Electric Co. to undertake a $110 million expansion in the Twin Cities' southwest suburbs.
In Shakopee on Tuesday, Emerson will open a $70 million headquarters building for its Rosemount-brand operation.
The business makes instruments to measure pressure, temperature, level and flow in industrial-fluid systems. They send information to control rooms of oil refineries, power plants, waste-treatment sites, petrochemical firms and food factories.
Emerson also recently completed $40 million in renovations and upgrades to factories in Chanhassen and Eden Prairie. The St. Louis-based company plans to add more than 500 new jobs at the three sites over five years to help fulfill demand for Rosemount instruments.
"We are excited. We are growing," said Tom Moser, group vice president of Rosemount Measurement and Analytical. He added, "There is no question that the Bakken oil fields, and the expansion of other shale and flows from the pipelines, are certainly contributing to a lot of our growth."
Rosemount instruments — most are roughly the size of a large flashlight — are considered vital in the industrial world because they prevent explosions, equipment failures and production slowdowns. The business is part of Emerson's process-management division, which has about $8 billion in annual sales.
Robert McCarthy, an equity research analyst for Stifel, Nicolaus & Co. said the process-management division "remains the company's jewel in the crown with strong order trends, outsized leverage to oil and gas and energy markets and continued excellent margins."
Rosemount engineering manager John Roche said the business makes more than 100 sensor and transmitter products.