Investing for the Long Haul: What’s Ahead for State Line Foundries in 2026

Reinvestment has always been a priority at State Line Foundries. Yet 2026 is shaping up to be a particularly important year. Several significant projects are already underway – all focused on strengthening operations, improving turnaround times for customers and creating a better work environment.

“These investments aren’t about short-term gains,” says Jesse Milks, president at State Line Foundries, which includes both State Line Foundry and Winnebago Foundry. “They’re about making sure State Line continues to serve customers well for decades to come.”

Upgrading the Heart of the Foundry

The largest project on the calendar is the installation of two new furnace power panels at the Winnebago facility. These panels control the power that melts iron. Without them, production comes to a standstill.

Until now, the foundry has relied on a single power panel – nearly 30 years old – to run two furnaces. “That setup means only one furnace can melt iron at a time, requiring operators to switch back and forth between batches,” Milks states. “While the system has held up, it’s been a concern and a potential source of downtime.”

The new system changes that. With the new modern power panels in place, two batches of iron can be melted simultaneously.

“The panels are far more energy efficient, reducing the electricity needed per ton of iron,” Milks explains. They also shorten the total time the furnaces need to run each day, dropping from about 16 hours to closer to 10 to 12 hours. That means less wear on equipment and more time offline.

The upgrade won’t instantly double output, but it will significantly increase flexibility and eliminate a downtime risk. Installation is expected to be completed in July.

Bringing in More Clean Air

Another major investment is taking place at the State Line Foundry facility, where a new makeup air unit will be installed in the second quarter of this year.

The plant uses multiple dust collection systems that pull air through filters and expel it outside the building. While effective, this process creates negative air pressure inside the facility. “The new makeup air unit will bring in clean outside air, warm it and distribute it throughout the plant,” Milks offers.

The result will be better air quality and improved comfort. It’s a clear example of the company’s commitment to its employees and to continuously improving working conditions.

Adding Air Set Molding Capacity

State Line Foundry is also expanding its air set molding capabilities. Air set molds are made using specialized mixers that combine sand, resin and reactants to form molds for casting production.

The facility currently operates two air set molding lines. “A third line is being added to increase capacity, improve turnaround times and provide more scheduling flexibility,” Milks clarifies.

The mixer and sand bin are already in place. The new line is expected to be up and running in the second quarter.

A Fresh Look for the SLF Facility

Visitors to the State Line facility will soon notice some exterior improvements. The cedar siding and shingles that date back to the 1970s have reached the end of their lifespan. “It’s time for a refresh,” Milks reasons.

The front of the building will be updated with steel siding and 20 new windows. The remodel will improve the appearance and make the building more energy efficient. Work on the project is already under way.

Taking A Look at 2026

Looking ahead, the outlook for 2026 is similar to 2025, with signs of a modest uptick. There aren’t any widespread negatives across segments – and some customers are already expecting growth.

That said, uncertainty remains. “Tariffs, reshoring discussions and higher interest rates continue to influence decision-making,” Milks states. “Some markets, like agriculture, are still under pressure. Others, such as mining – particularly of rare-earth materials – are seeing strong activity.”

Customers also talk of reshoring certain product lines, though in many cases that interest hasn’t yet translated into firm purchase orders.

Ready for What Comes Next

Overall, 2025 was a solid year for State Line Foundry, finishing slightly above average. A diversified customer base has helped balance market fluctuations, with some customers experiencing banner years while others navigate more challenging conditions.

“With these investments, we are well prepared for what’s next,” Milks says. “The people, capacity and infrastructure are in place to respond when demand increases. State Line Foundry is positioned to move quickly when markets pick up.”.