Volume 47, Issue 7 - July 2012

CompanyNews
Glass Industry Companies Rise Through Ranks of Fortune 500

Fortune magazine recently released its annual list of the top 500 U.S. companies—and among the top rankings for 2011 were several glass industry suppliers, including PPG Industries, 3M, Dow Chemical, Dupont, Eastman Chemical, Alcoa and Momentive Specialty Chemicals.

Dow Chemical, based in Midland, Mich., ranked 47 overall (45 in 2010) but also first within the chemicals sector. The company’s total revenue was $59,985 million compared to $53,674 million last year, a 12 percent increase. The company achieved a profit of $2,742 million for the year.

Dupont, based in Wilmington, Del., ranked 72 overall (84 in 2010), and second within the chemical sector. The company’s total revenue was $38,719 million, compared to $32,733 million last year, an 18 percent increase. The company’s profits are listed at $3,474 million.

Pittsburgh-based PPG Industries ranked 180 overall and third within the chemical sector (up from 181 last year). Its total revenue for 2011 was $14,885 million compared to $13,423 million in 2010, which is a 11 percent increase. The company achieved a profit of $1,095 million for the year, according to the report.

Eastman Chemical, based in Kingsport, Tenn., ranked 346 overall (348 in 2010) and ranked 11 within the chemical sector. The company’s total revenue was $7,283 million compared to $6,691 million last year, an 9 percent increase. Eastman, which recently acquired St. Louis-based Solutia Inc., achieved profits of $696 million for the year.

3M, a St. Paul, Minn.-based company, ranked 102 for 2011 (97 in 2010). The company’s annual revenue was $29,611 million, which is an 11 percent increase from last year’s $26,662 million. The company achieved a profit of $4,283 million for the year. Alcoa, the New York-based parent company of Kawneer, ranked 115 for 2011 (123 in 2010).

Alcoa’s total revenue last year was $24,951 million, with an 19 percent increase from 2010’s $21,013 million. The company’s profit is listed as $611 million.

Momentive Specialty Chemicals, based in Columbus, Ohio, ranked 452 (433 in 2010) with a total revenue of $5,352 million—a 3 percent increase since 2010, when the company achieved a revenue of $5,174 million. The company achieved profits of $118 million for the year.

Bonnell to Close Indiana Aluminum Extrusion Plant
Bonnell Aluminum, a subsidiary of Tredegar Corp. in Richmond, Va., will close its plant in Kentland, Ind., later this year. The plant, which employs 146 people, is scheduled to close by September 30.

Tredegar officials estimate that the company will recognize charges related to the shutdown of approximately $8 million, including accelerated depreciation on fixed assets of approximately $4 million, severance-related charges of approximately $1 million and other shutdown-related charges of approximately $3 million. Other shutdown-related charges primarily comprise equipment transfers and plant shutdown charges. Most of these charges will be recognized over the next 18 months, officials estimate.

The Kentland facility had sales of approximately $38 million in 2010 and has been operating at a loss for the past several years.

“This was a difficult decision to make, and we regret the impact this decision will have on our employees in Kentland,” says Duncan Crowdis, president of Bonnell Aluminum.

LinEl Sold
Mestek of Westfield, Mass., has acquired LinEl Signature of Moorseville, Ind., from its former owner and president Robert Sloan. With the purchase, the company has formed a new group of companies under the umbrella “Mestek Architectural.” Included in this group are Linel, Colt Group of England and the American Warming and Ventilating (AWV) division.

“It’s a very good thing,” said George Petzen of LinEl in an interview with USGlass magazine about the purchase of his company. “It’s good for them because they’ve been expanding in the architectural business, and we give them fabrication and finishing options that they didn’t have. It’s a nice fit for them and for us.”

LinEl will be much busier now, but there will be no other changes, Petzen says. “We will be expanding more than anything else,” he says. “We’ll be working for other divisions in the Mestek corporate family.”

LinEl has been in talks with Mestek for months now, and closed the deal in early March, according to Petzen.

Mestek is a manufacturing concern with annual sales of approximately $375 million and 2,000 employees in 15 facilities in North America and one in China. Mestek’s principal activities include HVAC and architectural products and metal-forming machinery.

Tem-Pace Acquires Atwood Spec-Temp
Niles, Mich.-based Tem-Pace LLC recently acquired Atwood Spec-Temp Glass in Antwerp, Ohio, from Atwood Mobile Products LLC. Production will remain active in both locations, according to the company. Terms of the acquisition have not been disclosed. According to Kent Mawer, sales and marketing manager for Tem-Pace, the acquisition will add a variety of capabilities to his company’s offerings.

“They had some size capabilities that we do not have and they gave us some opportunities to reach out into some things we don’t have and it helps us to fulfill more of our present customers’ needs,” says Mawer.

Mawer refers to the acquisition as a “win-win” situation for all parties involved and says there will be very few employee changes.

“Spec-Temp will be an LLC, basically a subdivision of Tem-Pace. Will that change? We don’t know that. It could be merged into one name but we don’t know that,” says Mawer. “We’re keeping the different identity factors but all to the benefit of the customers. Whenever we do anything they are our primary concern.”

The transition is expected to take place over the never several months.

 

Viracon to Upgrade Statesboro Facility
Viracon of Owatonna, Minn., will invest $4 to $7 million to refurbish manufacturing equipment and upgrade building infrastructure in its Statesboro, Ga., facility in anticipation of a commercial construction market recovery, according to the company.

Production in the facility will be scaled back during the anticipated six-month rebuild period, president Kelly Schuller says. “During this period of low seasonal and market demand, Viracon will continue to serve all markets from its Utah and Minnesota facilities with no disruption to current project needs or future commitments,” he says. “The majority of our employees in Statesboro will be furloughed during this rebuild project. We intend to recall all employees within six months when the facility upgrade is complete and higher rates of production resume.”

Viracon initially invested $27 million in 1999 when it commenced operations at the Statesboro facility. The company added 65,000 square feet to the facility in 2005.


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