Modine Manufacturing to close Illinois manufacturing facility

Special to The Freeman

April 23, 2014

RACINE – Modine Manufacturing Company announced Wednesday it will be closing its manufacturing facility in McHenry, Ill., which will result in about 135 full-time employees losing their jobs.

The Racine-based diversified global leader in thermal management technology and solutions said the action will be taken as part of Modine’s “proactive focus on operating scale production facilities across the globe in order to remain cost-competitive.”

The company plans to transfer the McHenry production to other facilities, including those in Nuevo Laredo, Mexico, Lawrenceburg, Tenn., and Jefferson City, Missouri. The McHenry plant makes parallel flow and serpentine condensers, oil coolers and radiators for the automotive, commercial vehicle, off-highway and building HVAC markets, according to the announcement. The plant will be closed during the course of about 18 months.

“Closing operations is never easy,” said Scott Wollenberg, regional vice president-North America, in a statement. “However, our analysis of Modine’s global product lines and North American manufacturing strategy led us to conclude that the best long-term solution for Modine and its shareholders is to consolidate all North American parallel flow heat exchanger manufacturing into other North American facilities. Closing the McHenry plant will help us rationalize production, maintain the scale we need in our manufacturing operations and improve our overall competitiveness and profitability. We are committed to making the transition as seamless as possible for our customers and to assisting our affected employees during the transition.”

In connection with this upcoming closure, Modine expects to incur a charge of approximately $2 million in the fourth quarter of its 2014 fiscal year, primarily related to anticipated severance payments and fixed asset impairment charges. According to the announcement, the company anticipates it will generate annual savings of at least $5 million once the closure is completed in fiscal 2016.

www.modine.com