Chrysler Group LLC has reportedly offered contract buyouts to an additional 84 employees at its engine manufacturing plant in Kenosha.

Kenosha employees who were offered buyouts have until Friday to decide if they want to accept the offer. The Kenosha plant has about 500 union and salaried employees now.

In May, the company offered early retirement contract buyouts to about 329 employees. About 196 of them took the offer. The remaining 60 to 70 employees are still working at the company, and its offer to those employees remains valid, meaning that as many as 154 workers could leave the engine plant.

Glenn Stark, United Auto Workers Local 72 president, said he has talked with Gateway Technical College about providing temporary workers, if needed, depending on the number of employees who take the buyout package.

The buyout offered to Kenosha workers is part of a larger offer to about 23,000 Chrysler employees across the country, a company spokesman said.

"As a continuation of its earlier Special Buyout Program and as a condition of the loan agreement with the U.S. Treasury, Chrysler Group has extended its Special Program offering to those newly eligible U.S. employees," said Chrysler spokesman Max Gates. "Special programs are also being offered for consideration at locations which were identified as negatively impacted during the bankruptcy.”

The buyout offer includes a special early retirement package, a lump sum payment and a voucher for Chrysler products. Employees who are not eligible for the buyout who choose voluntary termination will receive a lump sum payment and vehicle voucher.

Chrysler officials have said that the Kenosha plant will be closed at the end of 2010.

However, there remains hope that Chrysler’s new corporate parent, Fiat, might keep the plant open. Several officials from the Italian car company have toured the facility recently.

"We're fighting everyday to keep our plant open. This last year was tough and it has been a challenge to keep our employees motivated," Stark said.

To read a recent BizTimes story about Fiat officials touring the Chrysler facility, click here.

Sturtevant-based JohnsonDiversey has committed to decreasing its greenhouse gas emissions threefold by 2013, in accordance with the World Wildlife Fund’s Climate Savers Program.

When it joined the program in 2008, JohnsonDiversey pledged an 8 percent reduction – the company now believes it will be able to emit 25 percent less greenhouse gases by 2013.

“Our commitment to further reduce our (greenhouse gas) emissions and go beyond the initial pledge we made when becoming a Climate Savers member demonstrates our company’s passion for providing a cleaner, healthier future for the world,” said S. Curtis Johnson, chairman of JohnsonDiversey.

The Sturtevant developer of cleaning and hygiene products is one of 22 companies in the WWF’s Climate Savers program. In March, the companies announced an estimated 50 million tons of voluntary emissions reductions after working together for about 10 years.

Magnetek CEO says company's financial bottom is in rearview mirror

Menomonee Falls-based Magnetek Inc. has reported a fiscal first quarter net loss of  $1.8 million, or 6 cents per share, compared with net income of $881,000, or 3 cents per share, in the same period a year ago.

Magnetek recorded revenue of $17.8 million, a 32-percent decrease from a year earlier and an 11-percent sequential decline from the fourth quarter of fiscal 2009.

The decline in sales from the prior year quarter reflects the continued slowdown in industrial activity in the United States and the resulting impact on capital spending levels, the company said.

Peter McCormick, Magnetek's president and chief executive officer, said, "As expected, the difficult market conditions we experienced in the second half of fiscal 2009 continued throughout the first quarter of fiscal 2010. While industrial production in the U.S. increased slightly during the September quarter, capacity utilization rates remained well below historical averages and credit markets remained tight, resulting in sluggish capital spending levels which impacted our sales volume in the first quarter." Magnetek expects sales for the second quarter of fiscal 2010 to reflect a sequential double-digit percentage increase from the current year first quarter sales. Gross margins in the second quarter of fiscal 2010 are expected to be near the company's 30-percent target, due to cost savings from actions taken to reduce the company's cost structure.

"While we have not yet seen a robust recovery in our business to date, certain indicators seemingly support the assertion that the June quarter may have been the bottom in terms of order rates, and that the September quarter was the cyclical bottom in terms of revenue. As a result, we believe our sales for the second quarter will increase sequentially from the first quarter, and our current outlook projects improving quarterly trends for the remainder of the fiscal year," McCormick said.

Rexnord CEO says company is 'well-positioned'

Milwaukee-based Rexnord LLC recently posted fiscal second quarter net income of $4.5 million, down from $14.3 million in the same period a year ago.

The manufacturer's quarterly net sales fell to $369.7 million from $510.6 million a year earlier.

"We are pleased with our operating performance in the second quarter. Our adjusted EBITDA grew by $12.7 million dollars sequentially from our first quarter on similar sales resulting in an adjusted EBITDA margin of 18.6 percent, a 340 basis improvement from the first quarter,” said Todd Adams, Rexnord's president and chief executive officer. “In comparison to last year, excluding the impact of pensions, our second quarter Adjusted EBITDA margins were 20.2 percent, an 80 basis point improvement over the prior year, and our free cash flow generation continues to be very strong as we have generated $71 million dollars of free cash flow in the first half of fiscal 2010 compared to $23 million dollars in the first half of last year. While the overall economy remains difficult, the pieces of our business that we expected to stabilize for the most part have done so, and we are well-positioned to deliver solid results in the second half of fiscal 2010 and beyond."

Grede Foundries intends to be sold in auction

Milwaukee-based Grede Foundries has asked a federal bankruptcy court to approve a timeline for auction of the company, which has reached an agreement for its assets to be purchased by an affiliate of Minnesota-based Wayzata Investment Partners LLC.

Wayzata will serve as a "stalking horse" or opening bid in the auction.

There are also ongoing, active discussions with other potential bidders interested in purchasing the company, said Grede board chairman Richard Koenings. The purchase agreement with the affiliate of Wayzata will be the starting point for continuation of purchase discussions with other parties during the auction period over the next several weeks, he said.

"Additional parties have expressed a strong interest in purchasing our company, and our request to the court is the next step in the process that we expect will lead to a sale of the company to the highest bidder before the year's end," Koenings said. "The reorganization efforts we have undertaken in the last five months have strengthened our company and returned it to profitability, which has attracted the interest we have seen.  The agreement with Wayzata and the setting of the auction schedule puts our organization in a strong position to emerge from bankruptcy by year end as we have targeted."

Grede filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Wisconsin in June.

In this latest filing, the company asks the court to hold a Nov. 16 hearing on its timeline proposal. The proposed schedule calls for the auction to conclude by Dec. 9 and for a closing by Dec. 31, 2009.

"We anticipate there will be several substantive offers for the company, and our goal will be to get the best value possible," Koenings said. "With the structuring changes we have made and continuing indications that the economy may be rebounding, this is an excellent time to move this process forward and to an appropriate and successful conclusion."

The Grede facilities in Greenwood, S.C., and Vassar, Mich., are not part of the sale package and would be sold independently. Potential buyers have expressed interests in both of those plants, Koenings said.

"This is a significant step forward, and we are pleased to have made this progress during the last several months," Koenings said. "We would not be in this positive position but for the exceptional effort of every employee at every one of our facilities, under extremely challenging circumstances. We remain deeply committed to doing everything necessary to put the company on solid footing as the nation begins to rise out of the worst economic conditions since the Great Depression. When this process is completed by the end of the year, it will be beneficial for our customers, our employees, our vendors and the communities in which we operate."

Derco Aerospace signs exclusive spare parts contract with Belgian firm

Milwaukee-based Derco Aerospace Inc. has signed an exclusive two-year F-16 spare parts supply contract with Belgian-based company SABCA.

Under the agreement Derco will provide specified Hamilton Sundstrand, Honeywell and Argo-Tech F-16 spare parts for component repair and overhaul on a just-in-time basis in support of SABCA maintenance activities.

The contract further expands Derco's role in supporting European maintenance facilities and enhances Derco's F-16 inventory holdings. As partners, SABCA and Derco jointly will improve maintenance turn-around for F-16 operators.

"Derco values this opportunity to work with SABCA to provide support to European F-16 maintenance activities," said Brian Holt, Senior Vice President of Sales and Marketing. "This contract will allow Derco to support maintenance activities on a just-in-time basis to ensure European customers have improved fleet readiness."

Koeppe is new interim CEO at ZBB Energy Corp.

Milwaukee-based ZBB Energy Corp. has named Paul Koeppe as interim chief executive officer of the company after an internal investigation by the firm's audit committee resulted in the resignation of former CEO Robert Parry from the board of directors.

The company and Parry reached an agreement to address a "problem" regarding the company's tax classification of Parry's employment status and related withholding obligations in a manner that minimizes ZBB Energy's financial exposure.

Koeppe, who currently serves as an independent member of the board of directors, previously served as CEO and founder of Superconductivity Inc., a manufacturer of superconducting magnetic energy storage systems from 1988 to 1997, when it was acquired by American Superconductor, an electricity solutions company.

"We are taking all necessary actions to resolve the matter and to strengthen the company's internal controls on a going-forward basis," said ZBB chairman Bill Mundell. "We do not believe that the potential obligations identified in the internal investigation will have a material impact on the company's financial statements. We are also pleased that Paul Koeppe has agreed to undertake the role of chief executive officer on an interim basis and we are confident that Paul's leadership will help the company move forward and play a major role in addressing global energy issues."

ZBB also announced that its 2009 annual shareholders meeting has been rescheduled for Monday, Nov. 16.

Modine's CFO to leave company Friday

Bradley C. Richardson, executive vice president of corporate strategy, chief financial officer and director of Racine-based Modine Manufacturing Company has resigned his position effective Friday. Richardson has accepted another position with a publicly held company.

Robert R. Kampstra, Vice President and Corporate Controller, will assume the responsibilities of the Chief Accounting Officer on Nov. 13. He will report directly to Thomas Burke, president and CEO of Modine, while the company begins a search for Richardson’s successor.

“Brad Richardson has been a valued member of our executive team since 2003 and has played an important role in helping guide the strategic transformation of our company,” Burke said. “He leaves with our blessing in order to accept a similar position and at the same time fulfill his desire to return to his native Ohio where much of his family still resides. Brad leaves Modine at a time when we are well positioned both strategically and financially to build on our Four-Point Plan and continue our drive for long term, sustainable growth. We thank Brad for his service and wish him and his family our very best on this next chapter in their lives.”

Harley threatens to leave Pennsylvania for Kentucky

Harley-Davidson Inc. has narrowed its search for an alternative site to its York County, Pa., plant to Kentucky.

The Milwaukee-based company said it expects to decide by the end of the year whether to keep 2,000 jobs in Springettsbury Township, Pa., or move them to Kentucky, according to a report in the Central Penn Business Journal.

Harley is seeking concessions from its workers and local government entities in Pennsylvania.

The company said its top alternative site is Shelbyville, Ky.

Lagina Plumbing launches water conservation resource for businesses

Businesses that use large volumes of water have the potential to realize thousands of dollars in annual savings through a new water-savings program launched by Lagina Plumbing of Milwaukee.

The commercial plumbing company's new Water Preserve Program, created in cooperation with Kohler, is working with large-volume water users to identify opportunities for reduced use of water and related energy, and then to make plumbing system changes that could establish and maintain those savings.

"Those savings can be in the thousands of dollars per quarter," said Jim Lagina, president of Lagina Plumbing. "So along with respect for natural resources, there's a real financial incentive to practice water conservation."

The Lagina Plumbing management staff worked with the water conservation experts at Kohler to develop the Water Preserve Program, which can be engaged by a wide variety of business that use large volumes of water.

"Kohler, which was just selected by The Environmental Protection Agency's WaterSense program as its Manufacturing Partner of the Year for 2009, is a national leader in water conservation and the means to accomplish that," Lagina said. "That's two years in a row that Kohler has earned that award.  We're honored to partner with the company on this effort and in their drive to encourage wise use of water."

Jessica Franz, who joined Lagina Plumbing earlier this year, serves as the main consultant for the Water Preserve Program.

Lagina Plumbing has worked with a number of area building owners and contractors on water conservation efforts that are part of the Leadership in Energy and Environmental Design (LEED) guidelines of the U.S. Green Building Council, and has a LEED accredited professional on staff, Jason Maller.

Avalon Rail to rebuild cars for VIA Rail Canada

West Allis-based Avalon Rail Inc. will rebuild 12 rail cars for VIA Rail Canada.

Avalon Rail specializes in remanufacturing passenger rolling stock of all types. The company will use various Canadian engineering, design and supply firms for a portion of the project. The cars will be delivered in 2011.

"Avalon Rail was selected for this demanding work through a competitive bidding process based on numerous factors,” said VIA president and CEO Paul Cote. “These included price, craftsmanship, a detailed knowledge of the equipment to be rebuilt and on-time completion of previous projects."

VIA Rail Canada today announced a $19.5 million program for the reconfiguration of the 12 stainless steel passenger cars used on its western transcontinental train, the Canadian, to increase its accessibility and market appeal. The work is being funded from a $407 million allocated for passenger rail improvements under the Government of Canada's Economic Action Plan.

"We are honored to undertake this work for VIA," said June Garland, president of Avalon Rail. "The Canadian is a living legend, offering thousands of travelers from around the world the ultimate in safe, stylish and sustainable rail travel every year for more than a half-century. I can think of no better showcase for the skills of Avalon's dedicated craftspeople."

The American Society of Manufacturing Engineers – Milwaukee and Milwaukee chapter of the Society of Plastics Engineers will present a live demonstration and presentation on GM’s hybrid technology on Wednesday, Nov. 11 at 5:30 p.m. in the Industrial Building at Waukesha County Technical College, 800 Main St., Pewaukee. Cost is $15 for members and $20 for non-members. For information or to register, visit http://sections.asme.org/milwaukee/meeting/meeting.html.