Modine Announces Plans to Close Iowa Manufacturing Plant

Noria news wires

Modine Manufacturing recently announced plans to close its manufacturing plant in Washington, Iowa. The decision is dependent upon the conclusion of bargaining with the union at the Washington facility. The closure, which will impact approximately 245 full-time employees, reflects Modine's proactive focus on operating scale production facilities across the globe in order to remain cost-competitive.

The Washington plant makes liquid charge air coolers, plate oil coolers and fuel coolers for the automotive, commercial vehicle and off-highway markets. Modine plans to transfer the Washington production to other facilities in North America, including those in Mexico and Missouri. Plans call for the plant to close over an approximate 24-month period.

"Closing operations is never easy," said Scott Wollenberg, Modine's regional vice president. "However, our analysis of Modine's global product lines and North American manufacturing strategy led us to conclude that the best long-term solution for Modine and its shareholders is to consolidate all the Washington products into other North American facilities. We are committed to making the transition as seamless as possible for our customers and to assisting our affected employees during the transition."

In connection with the upcoming closure, the company expects to incur a charge of approximately $2 million in the first quarter of its 2016 fiscal year, with total closure costs of approximately $3 million over the entire closure period. Modine anticipates it will generate annual savings of at least $9 million once the closure is completed in fiscal 2018, as well as additional revenue opportunities and growth in vehicular markets due to the more competitive cost structure.

Headquartered in Racine, Wisconsin, with operations in North America, South America, Europe, Asia and Africa, Modine specializes in thermal management systems and components. For more information, visit

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