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October 7, 2008

Company invests $25 million in retooling Joplin plant

Anonymous The Joplin Globe Tue Oct 07, 2008, 09:23 AM CDT

By Debby Woodin

dwoodin@joplinglobe.com

Workers at Modine Manufacturing in Joplin have something to celebrate.

Not only is the plant at 3300 W. Seventh St. observing its 30th anniversary, but it is being retooled with $25 million to accommodate a new product line.

The new product is called an exhaust gas recirculation cooler, and it reduces emissions in diesel engines, both for over-the-road trucks and farm equipment. The EGRs are sold to customers such as Ford, Cummins, John Deere, ITEC, Hyundai and Volvo.

“It’s not all automotive, and that’s one of the things we’re happy about, given what’s going on right now” in the decline of automotive sales, said Dennis McDermott, plant superintendent.

“This product line gives us a great future too,” said Gene Michael, controller.

Modine announced in February that its Joplin plant would be the focus of a major initiative for the Wisconsin-based company, and that it would mean $125 million in work annually beginning in 2009 and running through 2015.

Some of that $125 million is for work that the plant already does, Susan Fisher, director of investor relations, said at the time, but a “majority” is new business or represents increases on contracts with existing customers.

The cooling systems recirculate part of the exhaust from diesel engines, which not only helps to cool the engine but also allows the engine to burn the exhaust, resulting in lower nitrogen oxide and particulate emissions. The new products will help large-truck manufacturers meet Environmental Protection Agency standards for vehicle emissions beginning in 2010.

To make the new cooler, the plant is moving out its old product lines of heat exchangers and remodeling to set up the new line. Since the plant opened, it has been producing shell- and tube-type oil coolers largely for use in automobile engines.

Equipment and technology for manufacturing the company’s old product lines are being sold to other companies and moved out of the Joplin plant in phases to make room for the new work. Some of that equipment has been used since the plant started in Joplin in 1978, said Mike Maddox, materials control manager.

Actual construction work started within the past month. It will take about a year to complete the renovation work, and get the new line fully installed and running.

To do that, every piece of equipment in the plant will have to be moved while production continues. “It’s like completely gutting your house and living in it at the same time,” McDermott said.

Modine, an international company, is making a $25 million investment in the Joplin plant’s changeover.

With the change, Modine will retain its current 180 jobs and add a few positions over time, said Lori Scott Dreiling, human resources manager. There will be a need for several more engineers and another production supervisor, she said. As production of the new line increases, some new production jobs will be filled in late 2009 or early 2010, Dreiling said.

The plant now operates with three shifts, five days a week. The new line, when fully operational, may require a sixth day of work at times, McDermott said.

Modine specializes in manufacturing heating and cooling components. It has 33 plants producing parts used in trucks, industrial equipment, refrigeration systems and fuel cells for heating, ventilation and air-conditioning equipment.

The company worldwide had revenues of $1.9 billion this year.

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