California-based CalStar Products Inc. has closed a $15 million equity investment to fund its continued growth and expansion of its green brick manufacturing business.

The largest investor in CalStar’s financing round was led by Nth Power, a venture capital group.

In late December, CalStar began making bricks in its first production facility in Caledonia. The 63,000-square-foot facility makes bricks using fly ash, a by-product of coal used at the nearby We Energies power plant.

Traditional bricks are made from clay and require as much as four days of baking time at 2,000 degrees Fahrenheit. CalStar’s bricks are “cooked” at less than 200 degrees for 24 hours, Thomas Pounds, CalStar’s chief executive officer, said previously. Pounds, who served previously as CalStar’s chief operating officer, was promoted to CEO earlier this month.

“We’re entering an era when carbon and energy efficient products that are competitively priced and deliver excellent performance in place are being specified by all of the leading architectural firms,” said Bryant Tong, managing director of Nth Power. “CalStar is well positioned to take market share immediately but it also has the potential to permanently replace supply from many of the nation’s shuttered brick plants.”

CalStar has already created a network of 29 brick dealers across the U.S. to serve the demand from architects, designers and builders for LEED certified buildings and sustainable hardscape projects.

Pounds said previously that CalStar hopes to operate a series of approximately six manufacturing facilities down the Mississippi Valley and East Coast after its Caledonia facility is running at full capacity. In January, the plant had about 15 employees. It will have approximately 35 workers when it reaches full capacity in the next two to three years, Pounds said.

To read a previous report on the CalStar facility, which includes a video interview with Pounds, click here.

The U.S. Small Business Administration (SBA) will present an Internet-based seminar titled “Contracting Opportunities & Surety Bonds” on Thursday, March 4, from noon to 1 p.m.

The program will discuss programs that can assist businesses looking to grow or expand in federal contracting. It will include information on surety bonds, which allow for public and private contracting, as well as how owners can position their business to sell to federal officials.

Speakers during the webinar will include Karen Hontz of the Office of Government Contracting and Business Development and Pam Swilling of the Office of Surety Guarantees with the U.S. Small Business Administration.

To join the webinar, visit www.sba.gov and click on “Online Business Chat”.

BizTimes Media’s annual Manufacturing Summit, a component of its annual BizTech Conference & Expo, will be held Thursday, April 29, and will feature executives from four prominent Wisconsin manufacturing companies. This year’s panel will include:

• Todd Teske, president and CEO, Briggs & Stratton, Milwaukee.
• Peter McCormick, CEO, Magnetek Inc., Menomonee Falls.
• Neal Verfuerth, CEO, Orion Energy Systems Inc., Manitowoc.
• Todd McDonald, vice president, Signicast, Hartford.

The panel discussion, to be moderated by BizTimes reporter Eric Decker, will cover several topics, including global competition, lean manufacturing, commodity pricing and sourcing, how these companies are implementing “green” initiatives, attracting and retaining new employees, and more.

This year’s BizTech Expo will be held April 28-29 in the Wisconsin Exposition Center at State Fair Park. For more information on the Expo, visit http://expo.biztimes.com.

Briggs close to settlement in class-action lawsuits over engine labels

Milwaukee-based Briggs & Stratton Corp. has entered into a stipulation of settlement that, if given court approval, will resolve more than 65 class-action lawsuits that have been filed against the company and other engine and lawnmower manufacturers.

The suits allege, among other things, that the companies misled consumers with incorrect power labeling on their lawnmower engines.

As part of the settlement, Briggs & Stratton and the other settling defendants have agreed to establish a class-wide cash settlement fund totaling $51 million, as well as certain injunctive relief concerning the power labeling of engines for the next 10 years. In addition, Briggs & Stratton will offer a one year extension of its current warranty for all class members filing a claim.

As part of the stipulation, Briggs & Stratton has denied that it has done anything wrong and seeks a resolution to avoid further protracted and expensive litigation.

Briggs & Stratton expects to recognize a pretax expense of approximately $31 million ($19 million after tax) in the third quarter of fiscal 2010 to reflect the impact of the settlement.

The stipulation, once approved, will resolve nationwide class-action litigation that first commenced in June 2004.

The proposed agreement has been submitted to Judge Lynn Adelman of the United States District Court for the Eastern District of Wisconsin for preliminary approval .

WMC names Manufacturers of the Year

The Wisconsin Manufacturers & Commerce has named the winners of its 22nd annual Wisconsin Manufacturer of the Year Awards.

The winners of the Grand Awards were: Oshkosh Corp.’s Defense Division, Oshkosh, mega company category; American Orthodontics Corp., Sheboygan, large company category; Sentry Equipment Corp., Oconomowoc, medium company category; Northwoods Paper Converting, Beaver Dam, small company category; and Frito-Lay, Inc., Beloit, sustainability category.

The awards recognized Wisconsin manufacturers that demonstrate a commitment to business excellence which has a positive impact on the company and the state, making Wisconsin a better place to live, work and play.

"The award acknowledges the progress and growth at Oshkosh Defense, as well the hard work and experience of our employees," said Andy Hove, Oshkosh Corp. executive vice president and president of the Defense Division. "This award is a tribute to the dedication of our workforce in building the finest military tactical wheeled vehicles to help supply our Armed Forces and help protect the lives of someone's son, daughter, mother or father."

The winners of the Special Awards were: Mayville Engineering Company Inc. (MEC), Mayville, “Community Involvement and Conservation Education;” Wisconsin Aluminum Foundry Company Inc., Manitowoc, “Industry Perseverance;” and Plastic Components Inc., Germantown, “Commitment to Community and Employees.”

Oshkosh Corp. lands another military contract for $640 million

Oshkosh Corp. has received an additional $640 million contract from the U.S. Army Tank-automotive and Armaments Command Life Cycle Management Command (TACOM LCMC) to deliver 1,460 MRAP All Terrain Vehicles (M-ATV).

To date, Oshkosh Corp. has received federal Defense Department awards valued at more than $4.74 billion for 8,079 M-ATVs, as well as spare parts kits and aftermarket in-theater support.

"Our Armed Forces have Oshkosh's full assurance that these highly mobile, life protecting vehicles will continue to be a top priority because we understand the urgency of the situation," said Robert Bohn, chairman and chief executive officer of Oshkosh Corp. "From day one, Oshkosh Corp. and our employees have been committed to meet or exceed the M-ATV delivery requirements, while simultaneously producing our other quality advanced tactical wheeled vehicles and meeting all other contractual obligations."

The Oshkosh M-ATV is the newest MRAP model, developed in response to an urgent need in Afghanistan. The vehicle is specifically designed to operate on the country's harsh mountainous terrain and unimproved roads while providing protection levels equal to or better than those of legacy MRAPs. Able to overcome steep, rocky and rugged terrain, the vehicle uses the Oshkosh-patented TAK-4 independent suspension system for superior cross-country mobility, including a 70 percent off-road profile capability and 16 inches of independent wheel travel.

Oshkosh has received orders to supply more than 2,400 TAK-4 systems for legacy MRAP upgrades for improved off-road mobility in Afghanistan.

MRPC, a Butler-based single-source provider of silicone molding, two-material molding and micro-molding for medical device components and assemblies, has promoted Greg Riemer to company president.

Riemer had been serving as chief operating officer of the 89-year-old Wisconsin company. The promotion marks the completion of a three-year leadership succession plan at the firm.

“Greg’s hands-on experience, coming in the midst of the worst recession our generation has ever known, coupled with his twenty years of industry experience in the plastic, rubber and silicone molding area, provides him with the tools appropriate to lead MRPC,” said John Schlump, MRPC’s chief executive officer. “During the last three years, Greg has built an executive leadership team to support the strategic growth plan for the company.”

In his six years with MRPC, Riemer has been among those at the company instrumental in guiding the firm’s focus on medical/life science device manufacturing and engineering services. In the past two years, MRPC has made multi-million dollar enhancements to its Butler manufacturing facility, including the addition of two new clean rooms and four new molding machines at the company, which has 100 employees.

“MRPC has made many tremendous technological advancements and we have a great team throughout,” said Riemer, who is the grandson of MRPC’s founder. “We’re on the leading edge of a growing industry and I’m really excited about our prospects.”

Nasdaq says Koss Corp. is noncompliant for stock listing

Koss Corp. has received notice from The Nasdaq Stock Market that because the company’s most recent annual report contained no financial statements, it is incomplete and does not comply with Listing Rule 5250(c)(1), which requires the timely filing of periodic financial statements.

Koss has 60 calendar days, or until April 20, to submit a plan to regain compliance on the exchange. If the compliance plan is accepted, Nasdaq can grant an exception of up to 180 calendar days from the filing's due date, or until August 16, to regain compliance. If the compliance plan is not accepted, Koss will have the opportunity to appeal that decision to a Nasdaq hearings panel.

As previously disclosed, because of unauthorized financial transactions, Koss is restating its previously issued financial statements for the fiscal years ended 2008 and 2009, for all quarterly periods during those fiscal years, and for the period ended Sept. 30, 2009.

Koss anticipates that the restated consolidated financial statements will be available as early as April 2010 but no later than June 2010. The quarterly report on Form 10-Q for the period ended Dec. 31, 2009, will be amended to include the unaudited consolidated quarterly financial statements promptly after the restated consolidated financial statements are available.

On Feb. 16 and 18,  separate shareholder derivative suits were filed in Milwaukee County Circuit Court in connection with the previously disclosed unauthorized transactions. The first suit names as defendants Michael Koss, John Koss Sr., the other Koss directors, Sujata Sachdeva, Grant Thornton LLP, and Koss Corp.

The second suit names the same parties, with the exception of Grant Thornton LLP. Among other things, both suits allege various breaches of fiduciary and other duties, and seek recovery of unspecified damages and other relief.

Sachdeva is accused of embezzling more than $30 million from the company.

HK Systems goes ‘Pallet-Free’

New Berlin-based HK Systems, Inc., a manufacturer and designer of automated material handling equipment and related software controls, is introducing “Pallet-Free Automation” as part of its “Automate the Conventional” suite of products.

The new family of automated guided vehicles uses a patented roller fork mechanism, which eliminates the need for pallets within a manufacturing or distribution facility. The elimination of pallets gives increased labor savings, enhanced space utilization, decreased product damage and lower operational costs, the company said.

HK Systems’ guided vehicles are able to use both pull pack and roller fork handling techniques, allowing them to handle materials that are easily damaged, said John Hayes, sales manage for the company. The firm is initially targeting customers in the packaged food, paper and pharmaceutical industries - where some producers are already using pallet-less material handling systems.

At its New Berlin headquarters, HK Systems employs about 280 in engineering, software development, integration, research and development, and sales and marketing. The company manufactures its automated material handling equipment in Utah, North Carolina and Kentucky.

The Milwaukee chapter of the Society of Professional Engineers will hold the seminar “Injection Molding Part Design Ideas That Reduce Tooling Costs and Lead Times” on Wednesday, March 17 from 6 to 8 p.m. at the Sheraton Milwaukee Brookfield Hotel, 375 S. Moorland Rd., Brookfield. Presenters include Mike Miller, director of engineering with New Berlin Plastics; Chevis Watkinson, president and CEO of Design Consortium; and Steve Gurchinoff, polymer engineer with Briggs & Stratton Corp. Cost is $30 for members, $35 for nonmembers. For information, visit www.milwaukeespe.org.