Modine shifting production to Harrodsburg, Ky., plant

RP news wires, Noria Corporation
Modine Manufacturing Company, a diversified global leader in thermal management technology and solutions, will be transferring additional production to its plant in Harrodsburg, Ky., from its Camdenton, Mo., facility, one of those U.S.-based operations the company intends to close over an 18- to 24-month period. With the new business, the Harrodsburg plants workforce is expected to double in size to approximately 400 hourly and 40 salaried employees.

Production being transferred to Modines Harrodsburg plant from Camdenton consists of aluminum radiators, charge air coolers and oil coolers for the off-highway market. The Harrodsburg facility manufactures round tube plate fin, heat exchangers and heating, ventilation and air conditioning (HVAC) modules and systems for automotive, truck and off-highway applications. In February, the plant received recognition from John Deere & Company as a Supplier of the Year.

We are excited about the opportunities the added production will provide for our facility and our employees, said John R. Foutch, Harrodsburg plant manager. We expect the plant to be running 24 hours a day, seven days a week when weve fully ramped up. In fact, we have already started hiring for segments of the business that are in the process of being transferred.

One skill set the Harrodsburg plant is especially interested in is aluminum TIG (Tungsten Inert Gas) welders. The facility has made recruiting these specialized employees a priority. The TIG process generates heat via an arc of electricity that jumps from a tungsten metal electrode to the metal surface intended to be welded. Aluminum is the metal most frequently welded with the TIG process, particularly in lighter gauges associated with automotive applications. The company is working with the State of Kentucky for granting inducements in connection with the anticipated costs incurred in expansion of the Harrodsburg plant.

Foutch said the transition is being carried out in a focused and strategic manner as operations at the Camdenton plant wind down. That will ensure a seamless flow of products to our customers. We have great confidence that we will be able to integrate the production effectively with our existing operations in the same manner that has earned us outstanding customer recognition over the years.

In April, Modine announced its intention to close plants in Camdenton, Logansport, Ind., and Pemberville, Ohio, as well as its Tübingen, Germany, facility. The intended closings and production shifts are part of Modines global restructuring program designed to realign manufacturing operations, improve profitability and strengthen global competitiveness. Realigning Modines manufacturing footprint should help the company achieve the scale it needs and provide greater balance in plant capacity than currently exists. The closing of the facilities is expected to result in $20 million to $25 million in annualized savings when fully implemented. In addition to manufacturing realignment, the restructuring plan calls for an evaluation of Modines product and business portfolio, greater discipline in capital allocation and a continued focus on reducing selling, general and administrative costs.

About Modine
Modine, with fiscal 2008 revenues from continuing operations of $1.8 billion, specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, HVAC (heating, ventilation and air conditioning) equipment, industrial equipment, refrigeration systems and fuel cells. Based in Racine, Wis., the company employs approximately 7,900 people worldwide at 33 facilities in 15 countries.