Posted on 07/20/2006 5:46:03 PM PDT by SwinneySwitch
RACINE, Wis. — Modine Manufacturing Co., which makes parts for heating and air conditioning systems, said Thursday it plans to close two plants in the U.S. and build a new one in Mexico.
The announcement sent Modine shares up 83 cents, 4 percent, to $23.76 in afternoon trading on the New York Stock Exchange.
Modine said the decisions are related to a new agreement to provide parts to a "major global manufacturing company," which will result in significant new business for Modine starting in early 2009.
The company said it plans to release details of that agreement within the fiscal quarter.a
Modine said it will close its Richland, S.C., plant and consolidate that production at its facility in McHenry, Ill. It also has conditionally approved the closure of its facility in Clinton, Tenn., once bargaining with the union representing workers at the facility is finished.
The moves will result in the elimination of the South Carolina plant's 170 jobs and the Tennessee plant's 100 jobs, a company spokeswoman said.
About 100 jobs will be added at the Illinois plant over the next 18 months, and another 20 people will be hired at a Kentucky plant, as part of the production shift, the company said.
The company said it will build a new facility next to its current one, which makes heating and air conditioning parts, in Nuevo Laredo, Mexico. The new plant will produce auto parts and hire about 150 workers in the next two years.
"Our moves to consolidate production in the U.S. will better utilize capacity and improve our fixed cost absorption," David B. Rayburn, Modine's president and chief executive, said in a statement.
"Expanding our facilities in Nuevo Laredo, Mexico to service our new business and that of our current customers goes far to support their needs for high performance, high technology components and systems in a cost-competitive manner."
The changes will result in about $8 million in pretax charges over the closure period, including $2.5 million in employee-related costs, $1.5 million in asset-related costs and $4 million in other costs.
Modine said the changes should be completed by the end of its 2008 fiscal year. Cash-related expenses for these actions will total about $7 million, the company said.
Modine currently employs about 8,000 workers at 34 plants, with about half of those workers employed at its 17 United States facilities.
Wow. Racine is my birth city. I remember touring the Modine building as a schoolkid. That, and Johnson Wax, Case, Racine Steel Castings, etc. really gave Racine a prominent face in manufacturing.
Do you know for a fact that those plants were union? I doubt it.
We used to have manufacturing here in Michigan until some democratic president in the 70s decided to redistribute it to Appalachia
Oops, I'm going to have to take down my Hot Dawg garage heater. Well..... maybe not.
They are probably chasing Emerson down there..I think they make the Liebert brand in Mexico.
We are free traders in a mercantilist world..which makes us suckers.
Which makes us the largest and most dynamic economy on the face of the planet, you mean?
"Modine said it will close its Richland, S.C., plant and consolidate that production at its facility in McHenry, Ill. It also has conditionally approved the closure of its facility in Clinton, Tenn., once bargaining with the union representing workers at the facility is finished."
From the article:
McHenry, Ill. It also has conditionally approved the closure of its facility in Clinton, Tenn., once bargaining with the union representing workers at the facility is finished.
Damn, that's unusual for Tennessee it's a right-to-work state. They probably moved from the north to the south and were forced to take the union guys. Same thing happened to the Saturn plant when they moved to Tennessee.
Sorry, you're right, I didn't read that closely. Tennessee is not known for it's union shops.
South Carolina Ping
Add me to the list. | Remove me from the list.
"VALEO" is their biggest competitor and supplier of car radiators, evaporators, condensers and heaters for the car manufacturers.
MODINE is one of the best "after market" manufacturer of the all said products with the best fitting,reliability and warranty.
You know, I think a visit from a cheerful, optimistic person like yourself is really what these 170 sons of South Carolina need right about now. How about dropping by this week in the employee parking lot after work to explain to them how their impending economic ruin is good for the rest of us.
I'll bet it'll brighten their entire day... How much is your deductible?
It's even worse. When I think of the women and children I weep. Then I wake up and thank God I'm not a liberal Democrat and get on with my life.
Any new contract with the big 2 1/2 requires manufacturing facilities in low wage locales.
The Japanese however, don't have such requirements.
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