Modine Plans to Close Harrodsburg, Kentucky, as Part of Capacity Consolidation; Will Offer Support Services to Affected Employees
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HARRODSBURG, Ky.--(Business Wire)-- Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today announced its intention to close its manufacturing facility here. The closure is expected to impact approximately 110 total employees, who will receive a variety of support services. This action reflects Modine`s continued execution of its strategic Four-Point Business Plan, which consists of product line rationalization, manufacturing capacity realignment, fixed-cost reduction and capital allocation discipline. Modine will transfer production from the 253,452 square-foot Harrodsburg plant to other Modine facilities in North America to consolidate regional production. The Harrodsburg plant makes radiators, round tube plate fin heat exchangers and HVAC modules for the commercial vehicle and off-highway markets. Plans call for the plant to close over an approximate six- to nine-month period. Modine will provide the affected employees severance and work closely with the Kentucky Department of Labor and other state and local agencies to offer employment assistance and other services. "Closing operations is never easy," said Scott Bowser, Modine Regional Vice President - Americas. "The difficult decision to close Harrodsburg was based upon our ongoing review and analysis of Modine`s global product lines. This analysis resulted in our decision to strategically de-emphasize our vehicular HVAC presence, which has been a core product line in Harrodsburg. Closing the plant will help us rationalize production, achieve the scale we need in our manufacturing operations and improve our overall profitability and competitiveness. Balancing production capacity in this way also will give us the flexibility to supply customers with cost-advantaged thermal management solutions during the current economic downturn and position us to grow when the markets recover." Bowser expressed Modine`s "deep appreciation to all of the Harrodsburg employees for the hard work and dedication they have shown and their determination to provide the best thermal products and systems to our customers. We want to make the transition as seamless as possible to our customers and to assist the affected employees during the transition." About Modine - www.modine.com Founded in 1916, with fiscal 2009 revenues of $1.4 billion, Modine 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, heating, ventilating and air conditioning equipment, off-highway and industrial equipment, refrigeration systems and fuel cells. The company employs approximately 7,000 people at 32 facilities worldwide in 15 countries. For information about Modine, visit www.modine.com. Forward-Looking Statements This press release contains statements accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine`s actual results, performance or achievements may differ materially from those expressed or implied in these statements, because of certain risks and uncertainties, including, but not limited to, those described under "Risk Factors" in Item 1A of Part I of the company's Annual Report on Form 10-K for the year ended March 31, 2009 and under "Forward-Looking Statements" in Item 7 of Part II. Other risks and uncertainties include, but are not limited to, the following: the company`s ability to remain in compliance with its debt agreements and financial covenants going forward; Modine`s ability to fund its liquidity requirements and meet its long-term commitments given the continued decline and disruption in the credit markets due to the world-wide credit crisis; the impact the current global economic uncertainty and credit market turmoil is having on Modine, its customers and its suppliers and any worsening of such economic conditions; the secondary effects on Modine`s future cash flows and liquidity that may result from Modine`s customers and lenders dealing with the economic crisis and its consequences; Modine`s ability to limit capital spending and/or consummate planned divestitures; Modine`s ability to successfully execute its four-point recovery plan; the nature of the vehicular industry, including the dramatic decline in customer build rates; and other risks and uncertainties identified by the company in public filings with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required by law. Modine Manufacturing Company Susan Fisher - 262-636-8434 firstname.lastname@example.org Copyright Business Wire 2009