Modine Manufacturing plans to close Mississippi plant

Modine Manufacturing Company, a diversified global leader in thermal management technology and solutions, on April 26 announced conditional plans to close its manufacturing plant in Jackson, Miss. The decision is dependent on the conclusion of bargaining with the union at the Jackson facility. This action is part of Modine’s strategic repositioning program announced in 2007 that is intended to support Modine’s growth and profitability goals.

“Although this was a very difficult decision to make, we believe it is in the best long-term interest of the company,” said Tom Burke, Modine executive vice president and chief operating officer. “We must maintain a competitive cost structure to stay profitable and meet our responsibilities to our customers, our shareholders and our employees. As demand for older copper and brass radiator technology slows and demand for newer technology is increasing, we are consolidating the production of our remaining copper and brass radiator business in fewer facilities to maximize our asset utilization. Modine’s Pemberville, Ohio, and Jefferson City, Mo., plants will have the business transferred to their locations following a definitive agreement with Modine’s Jackson, Miss., union. This is one of several steps we are taking to increase asset utilization in our U.S. plants, which should, in turn aid our programs to increase margins.”

“Repositioning our manufacturing footprint in this manner is one part of our plan to improve margins and return on average capital employed,” said Dave Rayburn, president and chief executive officer. “We have made substantial progress in all areas, including reducing SG&A expenses, further diversifying our customer base, markets, products and geography, sourcing products and components from areas that will enable margin improvement, and intensifying our focus on technology development.”

Modine purchased the Jackson plant in 2005 to make copper brass radiators for diesel-fueled vehicles and aluminum charge air coolers. The products serve both on-road and off-road markets, including Class 8 trucks, agricultural, construction, stationary power generators and military applications.

Founded in 1916, with fiscal 2006 revenues from continuing operations of $1.6 billion, Modine specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Based in Racine, Wis., the company has more than 7,900 employees at 34 facilities in 15 countries worldwide.