Modine Manufacturing Company, a diversified global leader in thermal management technology and solutions, on October 18 announced that its board of directors approved the funding for a new manufacturing facility in China. Modine will invest more than $16 million in the facility, which is expected to be operational early in calendar 2008 and will serve Modine global customers in the region. The board also voted to fully fund $20 million for Modine’s previously announced new facility in Nuevo Laredo, Mexico, that should be completed in April 2008. Both facilities have secured business that will begin production when the plants open.
In commenting on Modine’s new facility in China, David B. Rayburn, president and chief executive officer, said, “This facility, our third plant in China, allows us to capitalize on one of the fastest-growing economies in the world. It supports our global customers’ needs for localized manufacturing capabilities, and provides opportunities to reach new customers and markets. This facility will also provide a low cost country sourcing alternative to Modine with the ability to develop a scale manufacturing footprint in Asia.”
James R. Rulseh, Modine’s regional vice president for Asia, added, “This facility clearly establishes our manufacturing base in China. We approached the site selection, which is located in the Changzhou National Hi-tech District of Jiangsu Province, from the longer term vision of Modine’s specific target markets in China – specifically the off-highway, commercial vehicle and engine products segments. We will also use this facility to support projects for export to Hyundai’s Korean operations. This plant clearly leverages Modine Korea’s engineering and testing capabilities, and provides critical capabilities for our global customers who value our world-class manufacturing quality and our ability to provide globally competitive products to their operations all over the world. Over the years, Modine has developed a wide breadth of products for our global customers. We are extremely excited to have the opportunity to offer our product portfolio to the China market, as well as servicing other parts of Asia.”
Modine, with fiscal 2006 revenues of $1.6 billion, 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, HVAC equipment, industrial equipment, refrigeration systems, fuel cells, and electronics. The company employs approximately 9,000 people at 34 facilities worldwide.