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<B><FONT SIZE=3><P ALIGN="CENTER">UNITED STATES</P>


<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>


</B><P ALIGN="CENTER">Washington, D.C.  20549</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">_________________</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">FORM 8-K</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">CURRENT REPORT PURSUANT </P>


<P ALIGN="CENTER">TO SECTION 13 OR 15(d) OF THE</P>


<P ALIGN="CENTER">SECURITIES EXCHANGE ACT OF 1934</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="CENTER">Date of Report (Date of Earliest Event Reported): October 23, 2006 (October 19, 2006)</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="CENTER">NATCO Group Inc.</P>


<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">(Exact Name of Registrant as Specified in its Charter)</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P></FONT>


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<FONT SIZE=3><P ALIGN="CENTER">Delaware</FONT></TD>


<TD WIDTH="36%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">001-15603</FONT></TD>


<TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">22-2906892</FONT></TD>


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<FONT SIZE=3><P ALIGN="CENTER">(State of Incorporation)</FONT></TD>


<TD WIDTH="36%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(Commission File Number)</FONT></TD>


<TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(IRS Employer</FONT></TD>


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<TR><TD WIDTH="30%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="36%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="34%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">Identification No.)</FONT></TD>


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<FONT SIZE=3><P ALIGN="JUSTIFY"></P></FONT>


<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=630>


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<FONT SIZE=3><P ALIGN="CENTER">2950 North Loop West, 7<SUP>th</SUP> Floor</FONT></TD>


<TD WIDTH="48%" VALIGN="TOP">&nbsp;</TD>


</TR>


<TR><TD WIDTH="52%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">Houston, Texas</FONT></TD>


<TD WIDTH="48%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">77092</FONT></TD>


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<FONT SIZE=3><P ALIGN="CENTER">(Address of Principal Executive Offices)</FONT></TD>


<TD WIDTH="48%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="CENTER">(Zip Code)</FONT></TD>


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<FONT SIZE=3><P ALIGN="JUSTIFY"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">Registrant's Telephone Number, Including Area Code: (713) 683-9292</P>


<P ALIGN="CENTER"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<P ALIGN="JUSTIFY">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>


<P ALIGN="JUSTIFY"></P><DIR>


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<P ALIGN="JUSTIFY">[  ]&#9;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">[  ]&#9;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">[  ]&#9;Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">[  ]&#9;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P></DIR>


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<B><P>Item 1.01&#9;Entry Into a Material Definitive Agreement</P>





</B><P>On October 19, 2006, the Board of Directors, on the recommendation of an approval by the Governance, Nominating &amp; Compensation Committee of the Board, approved salary increases for certain executive officers. These included the following increases (a) to certain executives designated as "named executive officers" in the Company's 2006 proxy statement and (b) to an executive officer having an employment agreement with the Company, all of which are effective as of October 1, 2006:  </P>


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<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=536>


<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=21>


<B><FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;<U>Executive Officer</B></U></FONT></TD>


<TD WIDTH="57%" VALIGN="TOP" HEIGHT=21>


<B><U><FONT SIZE=3><P ALIGN="JUSTIFY">Annual Base Salary effective October 1, 2006</B></U></FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=21>


<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;</FONT></TD>


</TR>


<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=27>


<FONT SIZE=3><P ALIGN="JUSTIFY">C. Frank Smith</FONT></TD>


<TD WIDTH="57%" VALIGN="TOP" HEIGHT=27>


<FONT SIZE=3><P ALIGN="CENTER">$265,000</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27>


<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;</FONT></TD>


</TR>


<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=27>


<FONT SIZE=3><P ALIGN="JUSTIFY">Robert A. Curcio</FONT></TD>


<TD WIDTH="57%" VALIGN="TOP" HEIGHT=27>


<FONT SIZE=3><P ALIGN="CENTER">$265,000</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27><P></P></TD>


</TR>


<TR><TD WIDTH="42%" VALIGN="TOP" HEIGHT=27>


<FONT SIZE=3><P ALIGN="JUSTIFY">Knut Eriksen</FONT></TD>


<TD WIDTH="57%" VALIGN="TOP" HEIGHT=27>


<FONT SIZE=3><P ALIGN="CENTER">$260,000</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27>


<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;</FONT></TD>


</TR>


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<FONT SIZE=3><P><A NAME="id_0_5"><A NAME="id_0_6"></A></A></P>


<P ALIGN="CENTER">SIGNATURES</P>





<P>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>





<P>Dated: October 23, 2006</P>


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<P>NATCO Group Inc.</P>





<P>&nbsp;</P>


<P>&nbsp;</P>


<P>By: <U>/s/ Bradley P. Farnsworth________</P><DIR>


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</U><P>Bradley P. Farnsworth</P>


<P>Senior Vice President &amp; Chief</P><DIR>


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<P>Financial Officer</P></DIR>


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================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
_________________
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): October 23, 2006 (October 19, 2006)
NATCO Group Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware
001-15603
22-2906892
(State of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
2950 North Loop West, 7
th
Floor
Houston, Texas
77092
(Address of Principal Executive Offices)
(Zip Code)
Registrant's Telephone Number, Including Area Code: (713) 683-9292
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01	Entry Into a Material Definitive Agreement
On October 19, 2006, the Board of Directors, on the recommendation of an approval by the Governance, Nominating & Compensation Committee of the Board, approved salary increases for certain executive officers. These included the following increases (a) to certain executives designated as "named executive officers" in the Company's 2006 proxy statement and (b) to an executive officer having an employment agreement with the Company, all of which are effective as of October 1, 2006:
Executive Officer
Annual Base Salary effective October 1, 2006
C. Frank Smith
$265,000
Robert A. Curcio
$265,000
Knut Eriksen
$260,000
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: October 23, 2006
NATCO Group Inc.
By:
/s/ Bradley P. Farnsworth________
Bradley P. Farnsworth
Senior Vice President & Chief
Financial Officer