Apogee Enterprises to Close Two Plants, Terminating 400 Employees
Apogee Enterprises Inc. announced major changes to its business structure on August 12 in what it calls an effort to focus the architectural glass segment on emphasizing premium, high-performance products. It will close the Viracon facility in Statesboro, Ga., and work currently performed in Statesboro will be transitioned to the facility in Owatonna, Minn.
In addition to closing the Statesboro location, Apogee announced that the Velocity facility in Dallas will also close after only operating for about a year and a half.
In its announcement, Apogee also said the Architectural Framing Systems (AFS) segment will become two business units. The first will be Storefront and Finishing Solutions, which will offer storefront, entrance and stick curtainwall solutions, along with coating and related services for architectural products. Primary brands will include Alumicor, Linetec and Tubelite.
The second is Window and Wall Systems, which will provide window and wall solutions targeting mid-size to large architectural projects. According to a press release, this business will sell under the EFCO and Wausau Window & Wall brands.
Apogee also announced it will move the Sotawall business into the architectural services segment, which is currently a part of AFS. This transition is expected to be completed in the first quarter of the fiscal year 2023. Until then, Sotawall will continue to report its financial results as a part of AFS, according to the press release.
The company expects these actions to be substantially completed in the first quarter of fiscal 2023. Once completed, the company’s workforce is expected to be reduced by about 400 employees.
“Through our enterprise strategy work, we are developing a roadmap for Apogee to become the economic leader in our target markets, bringing the best value to our customers,” said Ty R. Silberhorn, Apogee CEO. “Our goals are to focus on the most attractive long-term opportunities, while ensuring we have the operating model and capabilities needed to consistently deliver profitable growth. The actions we are announcing today will better align our organization and cost structure to achieve these objectives.”
According to the announcement, these actions build on the company’s previously announced restructuring and cost savings initiatives. In October 2020, the company announced that it had identified opportunities for $10 to $20 million of annualized cost savings to be achieved by the end of fiscal 2023. With this announcement, the company expects to reach $20 to $30 million of annualized savings by the end of fiscal 2023.
According to the release, Apogee expects pre-tax charges between $30 million to $35 million related to the announcement, primarily for asset impairments and severance. The company will record these charges incurred and anticipates the majority will be recorded in the second quarter of fiscal 2022. Excluding these expected charges, Apogee is maintaining its previous guidance for fiscal 2022 of adjusted earnings between $2.20 to $2.40 per diluted share.
Rehau Group Re-Organizes and Revamps Business Structure
The Rehau Group announced that it is setting up Rehau Automotive and Rehau Industries as separate companies, dividing the company currently known as Rehau AG + Co. Together with Raumedic and Meraxis as well as the recently founded innovation unit Rehau New Ventures, the company said these will form the strong pillars of the Rehau Group in the future. At the same time, after more than 20 years at the helm of the Rehau supervisory board, Jobst Wagner handed the president’s office to his brother Veit Wagner on July 1, 2021, and took on his brother’s current role as vice president.
The transition to the new structure is expected to be completed in the first half of 2022. The new management bodies started their work on July 1, 2021. For the employees of Rehau, all employment contracts, contract contents, and creditable seniority will remain unchanged.
Proteus Façades, Rowe Façades to Offer Rainscreens
Rowe Fenestration, based in Sacramento, Calif., announced it is now working with U.K.-based Proteus Façades to provide the company’s rainscreen cladding systems for building envelopes.
“We are delighted to have partnered with Rowe Fenestration in Northern California and Nevada which is a key area in our expansion into the USA,” says Simon Gregory, sales director at Proteus. “We look forward to working with Rowe Fenestration and the local facade network to bring our range of aluminum honeycomb rain-screen systems to the region.”
Proteus is a designer and manufacturer of rainscreen cladding systems for building envelopes specializing in optically flat honeycomb bonded rainscreens.
“This is an innovative product that is unique from a design perspective—a great design solution as a signature feature on projects,” says Chris Rowe of Rowe Fenestration. “We are thrilled to add Proteus Facades’ innovative, long-standing, high performance and low maintenance building envelope solutions to our offerings.”
Kensington Glass Arts Inc. Celebrates 45th Anniversary
Kensington Glass Arts (KGA) began in July 1976 as a custom stained glass window fabrication company called Victorian Glassworks. Over the next ten years, the product lines expanded to include etched and carved glass. In 1987, the company was incorporated and rebranded as Kensington Glass Arts Inc. In 2002, KGA invested in building a full-scale glass manufacturing and processing facility in Ijamsville, Md. At that time, it was the only glass tempering facility and remains the only ISO9001 quality certified plant in the state of Maryland, according to the company. In 2020, a second manufacturing plant was established in Sterling, Va., increasing production capacity.
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