February Industry Watch: Business

(HOUSTON, TX) . . . launched the “Real Men Drive Pink” campaign to raise awareness about male breast cancer – a disease the American Cancer Society estimates was newly diagnosed for approximately 1,970 U.S. men in 2010. As part of the endeavor, the company built a pink electric forklift truck to raise funds to support breast cancer research.

Golden Town International, a restaurant furnishings designer and distributor to Asian restaurants throughout the U.S., recently purchased the pink electric Mitsubishi forklift truck for use in its Houston warehouse. Proceeds from the sale, totaling $4,500, were donated to the Susan G. Komen for the Cure and the National Philanthropic Trust Breast Cancer Fund. www.mit-lift.com

(MELVILLE, NY) . . .
completed its previously-announced acquisition of Rutland Tool & Supply Co. , a subsidiary of Lawson Products, Inc., for approximately $11 million in cash plus the assumption of certain liabilities. The company continues to expect the acquisition to become accretive to earnings in late-fiscal 2011 or early-fiscal 2012.

Based in Whittier, CA, Rutland was founded in 1955 and markets and distributes a broad range of industrial tools, cutting tools, abrasives, machinery, precision instrument supplies, safety products and other MRO-related supplies to more than 20,000 customers. Customers have access to more than 100,000 items through multiple channels including web, showrooms, catalogs and sales flyers. Rutland’s customer base includes industrial machine and metalworking shops, as well as maintenance and repair facilities. In 2009, Rutland generated revenue of $33.7 million. www.mscdirect.com

(LAKE MARY, FL) . . .
is celebrating its 25th anniversary as a leader in the industrial lifting training industry. The company was founded in 1986 by Ted Blanton, Sr, Joe Crispell, and two other partners in Longwood, FL, a northern suburb of Orlando, with the idea offering crane operator, crane inspector, and rigging safety training programs. Today, NACB has evolved its offerings to include a wide variety of industrial lifting courses through a myriad of medium and delivery methods.

These include, but are not limited to, traditional classroom training, on-site training, simulator training, hands-on training, and video-assisted training. Along with these training methods, NACB also provides organizations with subject matter experts and litigation support services.

NACB has continued to expand its operations, with centers across the country, and has its eyes on yet two other regional markets in the U.S.. NACB currently continues its international presence and work with Central and South America, and is excited to now be working in other worldwide markets as well, successfully adapting products and programs to suit the needs of these markets.

North American Crane Bureau Group consists of several divisions and corporate entities, all in active support of the crane, hoist and rigging industry. Members of the executive staff actively participate in the development of various national consensus safety standards under the ASME B30 umbrella, support several national trade associations, and are founding members of the Association of Crane and Rigging Professionals. www.cranesafe.com

(ATLANTA, GA). . .
is closing its foil rolling activities at Bridgnorth, England, and part of its packaging business on the same site by the end of April. The announcement comes after a 90-day consultation with the 319 employees at Bridgnorth. The company is a global leader in aluminum-rolled products and beverage can recycling, with sales of $8.7 billion.

“Despite significant effort by the Bridgnorth team, a viable alternative to closure unfortunately did not emerge for most of the operation,” said Tadeu Nardocci, president of Novelis Europe and senior vice-president of Novelis Inc. “We thank the employees for their constructive approach during this difficult time.” It is possible that part of the packaging operation at Bridgnorth may be sold as a going concern. The company is in discussions with potential buyers for the printed confectionery packaging business on the site.

The closure and subsequent consolidation of the business into other plants in Novelis’ European system aims to improve the competitiveness of the company’s overall foil and packaging production system in response to over-capacity in the European foil market and increasing competition from manufacturers in low-cost countries. The company added that existing customer orders will be fulfilled and clients will be contacted individually regarding the future handling of their business. www.novelis.com

(BELOIT, WI) . . .agreed to acquire 100 percent of the stock and assets of the Electrical Products Company (EPC) from A.O. Smith Corporation (Milwaukee, WI). EPC manufactures and sells a full line of motors for hermetic, pump, distribution, HVAC and general industrial applications.

Total consideration for the transaction is approximately $875 million, including $700 million of cash and approximately $175 million in shares of Regal Beloit common stock. Regal Beloit expects the acquisition to add annual sales of more than $700 million in the first full year following the acquisition and to be accretive in the first full year following the acquisition, excluding one-time transaction-related expenses and purchase accounting adjustments.

The majority of these expenses will be incurred in the first quarter following the close of the transaction. Closing will be subject to customary regulatory approvals. Operations include motor manufacturing facilities in the U.S., Mexico, China and the United Kingdom. This transaction represents the seventh announced acquisition for Regal Beloit in 2010, all of which are consistent with the company’s stated objectives of acquiring businesses that include energy efficiency technology, strengthen the geographic footprint and offer a synergistic fit.

Henry Knueppel, CEO and chairman, commented, “This is a defining acquisition for us. We believe that this acquisition achieves all three criteria of our acquisition strategy. Equally important, we are looking forward to welcoming the outstanding employees of EPC to our company. EPC adds exciting new technologies, enhances geographic presence, and drives significant synergies. Furthermore, the transaction is expected to be accretive, excluding non-recurring items and purchase accounting adjustments, the majority of which are expected to occur in the first quarter following the close of the transaction. This transaction provides us with a more complete product and technology portfolio, which will allow us to add value for our customers.”

Paul Jones, CEO and chairman of A.O. Smith, commented, “They will be a tremendous steward for our business. We believe that they are a good cultural fit for the EPC organization. This transaction will benefit all of our stakeholders.” www.regal-beloit.com, www.aosmith.com

(TENNIKEN, SWITZERLAND) . . .
broke ground on a new facility that will expand its manufacturing capacity and capabilities at the company headquarters in Tenniken, Switzerland, and will double the company operations area.

“Despite the recent economic conditions, we have continued to experience increased demand for our precision toolholding products,” says Andreas S. Weber, president. “Over the past decade, we have completely filled the reserve space that was built into our current facility. This new expansion reflects the strong growth we have experienced as manufacturers around the world have discovered and embraced our products.” www.rego-fix.com

(FITCHBURG, MA) . . .
launched a new online catalog and web-based cutting calculator designed to help customers optimize blade-purchasing decisions and aid in the setup and performance of band saw machines and blades. Proper blade selection reduces material waste, extends blade life, and improves cut quality. Additional resources, such as new web-based employee training and certification programs, round out the website offerings.

“As experts in cutting technology, we’ve created an array of tools to help end-users order and properly use our products. This helps them avoid common purchasing mistakes and sawing problems,” said David Miles, vice president of sales and marketing. Online catalog customers select from various blade categories such as carbide, bi-metal, carbon, grit edge and power hacksaws. Blade offerings immediately appear as the user selects the type of material and shape to be cut. Easy-to-read reports detail blade applications, features, benefits and performance.

Quick-Calc Customers select material and format; the Quick-Calc instantly recommends an optimum choice from among five blade types. Web logic reveals why the top blade was specified. www.neveryieldtosteel.com

(FORT WAYNE, IN). . .
announced that its Structural and Rail Division at Columbia City, IN, is supplying 28,500 net tons of continuous welded rail (CWR) to its strategic rail distributor, Pittsburgh-based L.B. Foster Company, for installation on the New England Central Railroad (NECR), an operating subsidiary of RailAmerica, Inc.

L.B. Foster will deliver the new rail to Vermont for use in New England Central’s “Vermonter” project. Funding of the project, a part of the Federal Railroad Administration’s High-Speed Intercity Passenger Rail Program, was awarded to the State of Vermont from the American Recovery and Reinvestment Act. To be completed by mid-2012, the project is to improve Vermont’s state-supported Amtrak service in this region on a continuing basis. The new welded rail will improve the speed of intercity passenger service and add capacity for freight carloads. Steel Dynamics is supplying rail to upgrade approximately 140 miles of NECR track.

According to Paul Kotsenas, SDI manager of rail and special products, “Our role is to provide the highest-quality standard rail possible in the longest lengths possible. We are producing the 115RE Standard Strength rail in 240 ft lengths and welding these rail sections into 1600 ft continuous strings at our weld plant adjacent to the rail mill.” The first of the trainloads of welded rail are being loaded onto L.B. Foster’s specially-equipped CWR trains. The completed order will incorporate 18 trainload shipments of welded rail to be delivered by mid-2011 for installation at various locations throughout Vermont.

L.B. Foster manages the trackside off-loading of the rail. “The convenience of our own weld train and our jobsite management capabilities help to expedite deliveries and minimize off-loading time along this busy route,” said Greg Lippard, vice president of L.B. Foster Rail Sales. To continue to support the world rail community, Steel Dynamics recently completed a $1.2 million upgrade of its rail testing and inspection unit and is embarking on a $17.5 million capital improvement project to streamline processing in the rail mill finishing area. www.steeldynamics.com, lbfoster.com

(KEMPENICH, GERMANY) . . .
is recalling the rest of its Classic Universal series diamond cutting discs to ensure their customers full safety following the voluntary recall of the 230 mm diameter discs at the beginning of November. The affected cutting discs are those with diameters of 115, 125 and 180 mm, with the respective item numbers 1607000, 1608000 and 1610000.

While it is known that diamond segments can break off while using the 230 mm discs and possibly injure the operator or surrounding persons, tests performed by the Institute for Occupational Health and Safety of German Statutory Accident Insurance (IFA) have yet to find any defects for the remaining diameters. According to company management, the sales partners were nevertheless informed of the extended voluntary recall and those products were removed from the shelves. End users who are already in possession of a Classic Universal diamond cutting disc are asked not to use them any longer and to send them to the following address in exchange for replacement parts: wolfcraft GmbH, Technical Service, Löhstrasse 18, D-56745 Weibern.

“We would like to continue to help our end users to achieve successful project results without having to rely on statistical safety probabilities. Therefore we are recalling all Classic Universal diamond cutting discs, even though current tests of the 115, 125 and 180 mm discs have not shown any evidence of an inadequate diamond segment adhesion during rotating tool use,” stated Reinhard Wolff, managing director of wolfcraft.

Defects in diamond segment adhesion for the 230 mm discs were discovered during voluntary inspections by the IFA in early November. wolfcraft GmbH decided to a voluntarily recall these products in order to avoid any potential danger to operators. Since then, all 5,878 products that may have been affected in Europe, including those items with diameters of 115, 125 and 180 mm, were replaced with new products in DIY stores. www.wolfcraft.de

(ST. PAUL, MN) . . . was acquired by Demmer Investments IV, Inc., an entity formed by the shareholders of Demmer Corporation (Lansing, MI). Terms of the sale were not disclosed.

For more than 50 years, St. Paul-based Quality Tool has been a leading provider of engineering-focused precision metal fabrication, stamping, machining, bus bar and design services to diversified industrial, medical, technology, telecommunications and defense industries. The company has more than 110,000 sq ft of production space and state-of-the-art equipment split between its St. Paul headquarters and its Brookings, SD, facility.

The existing leadership team, including president Chuck Proulx, will continue in their roles as operators of the business. Proulx said, “Demmer and Quality Tool share a commitment to growth, continuous improvement in everything we do, and delivering the highest levels of customer satisfaction. This alignment in values, focus, and the synergies between Quality Tool and Demmer will deliver great benefit to our employees and customers. We are very pleased to be joining their organization.”

Bill Demmer, president and CEO of Demmer Corporation, stated, “They fit very well in our diversification strategy. The culture of Quality Tool is a good match with our portfolio of companies. We look forward to continued growth and development.” Demmer Corporation is a vertically-integrated manufacturer that provides fabrication, machining, assembly and integration to companies in the defense, aerospace, automotive, energy, and transportation industries. The company employs more than two million sq ft of state-of-the-art production space to produce components and perform assembly for battle tanks, personnel carriers, bomb-resistant vehicles and more.

Sten Sjoberg, chief operating officer of Demmer, commented, “We are very pleased to have been able to acquire a company with quality management and an outstanding customer base. We look forward to being part of the further development of Quality Tool and its great workforce.” www.demmercorp.com, www.qualitytool.com

(HANOVER, NH) . . .
was selected as a Star worksite by the Occupational Safety and Health Administration’s Voluntary Protection Program (VPP). The company joins an elite group of organizations to receive STAR VPP status. Currently, less than 2,200 worksites across the country have the STAR designation.

The VPP recognizes organizations that have outstanding safety and health practices. Organizations must maintain injury and illness rates that are significantly below U.S. Government averages for their industry. For 2010, Hypertherm’s rate is less than one incident per 100 full-time associates, compared with an industry average of nearly eight incidents per 100 workers. In addition, organizations have to demonstrate a disciplined system of hazard prevention and control, training programs, and worker involvement. The selection process includes a rigorous five-day onsite evaluation by five safety and health professionals.

“This recognition is a testament to the hard work and commitment to safety that all our associates have made over the last few years,” said Hypertherm president and founder, Dick Couch. “The safety of all associates continues to remain a primary focus for us and we plan to continue our drive to make this the safest workplace possible.” www.hypertherm.com

(MORGANTOWN, PA) . . .
added Kinkelder USA (Rockford, IL) as its newest distributor, representing Behringer Eisele in three of their locations, including Saws International (Rockford, IL), Kinkelder Saw Inc. (Canton, MI) and Alabama Cutting Technologies (Pell City, AL).

Kinkelder USA is a leader in the steel cutting industry for supplying high-quality cutting tools, including circular saw blades, band saw blades, friction saw blades and circular knives. Richard Klipp, president of Behringer Saws says,”With their extensive technical background in circular saw blades, they bring an invaluable level of experience and knowledge to the table that will prove very beneficial to our mutual customers. We could not be more pleased to have such a professional organization representing our circular cold saws in the marketplace.”

Michael Rans, vice president and general manager of Kinkelder USA, concurs and adds, “They were the obvious choice because of the quality of their existing line as well as their recent advances in automatic carbide tipped sawing machinery. We feel that we can use these attributes to improve the productivity for many of our U.S. customers.” www.behringersaws.com

(CHAMPAIGN, IL) . . .took home bronze-level certification in the Caterpillar Supplier Quality Excellence Program, which primarily focuses on quality and on-time delivery.

Coupled with the focus on quality and delivery, the forger implemented Six Sigma initiatives over the past year in conjunction with the CAT SQEP. Kyle Zook, Forge Engineer, will be the company’s first Six Sigma Black belt and spearheaded several projects to streamline processes, become more proactive at identifying quality issues and be able to better meet needs and customers’ special requests. Under the direction of Deployment Champion Jesse Lindley, a product manager, the company expects to improve efficiencies internally. www.clifford-jacobs.com