1965 - 1986
With contracts in distant states such as Alabama, Ohio and Indiana, Cherne Contracting had established itself by the mid 1960's as a national mechanical contractor with a reputation for quality and on time performance. But the company's growth was limited by its remote setting in Ironwood, Michigan and in 1965 operations were relocated to Minneapolis, Minnesota.
Pleased with the company's success in the power field, Al began to focus even more on this sector. Construction opportunities for coal fired power projects were numerous during the late 1960's, 1970's, and early 1980's. During this time Cherne had multiple contracts at 38 power generation facilities across 17 states. This work accounted for more than 85% of the company's volume during the period 1968 through 1986.
The company entered the nuclear power construction field in 1966 when it was awarded the mechanical work on General Electric's Southwest Experimental Fast Oxide Reactor (SEFOR) in Fayetteville, Arkansas - one of the first projects to be built in the infant nuclear industry. Cherne continued to build on this experience through the 1970's with work at Northern States Power's Prairie Island and Monticello nuclear plants. In 1978 Cherne was awarded a $155 million lump sum contract for the mechanical work at the Marble Hill Nuclear Plant in Indiana.
Although business was strong, the face of the industry was changing with more clients desiring turnkey construction contracts. In the early 1980's, Cherne responded to this trend by developing full multi-discipline construction capabilities with the purchase of Foley Brothers, a century old Minnesota based civil contractor, and the hiring of industry professionals with electrical, insulation, and equipment erection expertise. But just as the company was ready to leverage its broadened services to greater challenges, the construction opportunities in the power market evaporated.
With the majority of its activity in the power sector, Cherne was in a difficult position. Company executives searched for opportunities in other industrial construction sectors, and in 1986 secured contracts for the mechanical work at Lake Superior Paper Industries' new paper mill in Duluth, Minnesota and at Koch Refining's facility in Pine Bend, Minnesota. While Cherne had done paper projects before, the Koch project was the company's first experience in the refining industry, and exposure to new opportunities and new challenges.
It was at this time that Al Cherne retired from day to day responsibilities transitioning leadership to President Gary Ratcliffe and Executive Vice President Bill Cherne
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