ThyssenKrupp Sells ThyssenKrupp Waupaca Inc. To KPS Capital Partners. KPS Commits to Pursuing Continuity and Further Growth.5/15/2012WAUPACA, WISCONSIN, May 15, 2012 –ThyssenKrupp AG, a global materials and technology group based in Essen, Germany, announced today the sale of ThyssenKrupp Waupaca Inc., its U.S. foundry business, to an affiliate of KPS Capital Partners, LP (KPS), a New York-based private-equity firm. A “Stock Purchase Agreement” (SPA) signed by both parties was approved by the ThyssenKrupp AG Supervisory Board earlier today.
With three plants in Waupaca and one in Marinette, Wisconsin, and facilities in Tell City, Indiana, and Etowah, Tennessee, ThyssenKrupp Waupaca, Inc., is the largest independent iron foundry in the world. The company employs approximately 3,500 in all three states and had sales of nearly $1.48 billion in the last fiscal year. The foundry group produces gray and ductile iron castings using state-of-the-art technology and serves the automotive, commercial truck, agriculture, construction, and other industrial markets.
The decision to divest ThyssenKrupp Waupaca comes as part of the wider strategic plan and portfolio adjustment announced by the ThyssenKrupp Group in May, 2011.
ThyssenKrupp Waupaca President and CEO Gary Gigante noted that the decision to sell the U.S.-based foundry to KPS came after extensive due diligence to identify a buyer that met the prerequisites outlined by ThyssenKrupp‟s “best owner principle.” Under the “principle,” the buyer was required to provide a detailed strategy for the continuity and growth of ThyssenKrupp Waupaca‟s business that also took into account the interests of employees and customers.
“We wanted to be sure that Waupaca‟s next owner shared our commitment to its future and that it was „business as usual‟ for our workers and customers the day after the deal is finalized. I believe that we can achieve that goal,” Gigante said.
David Shapiro, a KPS Managing Partner, said, “We are very excited to create an independent Waupaca Foundry. Waupaca is the largest company in its industry worldwide with the leading North American market share in each of its diverse end markets and strong customer relationships that have been developed over decades of partnership. The company possesses world-class assets, unrivaled scale and scope, industry leading quality and service, and a commitment to investing in state-of-the-art technology and process development.”
“We look forward to working with Chief Executive Officer Gary Gigante, his management team and all of Waupaca‟s employees to build on this great platform by strategically expanding into regions where Waupaca‟s key customers are growing. The combination of the company‟s unique strengths and the financial resources of KPS will provide the foundation for Waupaca‟s future growth, both organically and through acquisitions in North America and around the world,” he added.
KPS Capital Partners, LP is the manager of the KPS Special Situations Funds, a family of private equity funds with over $2.8 billion of assets under management focused on constructive investing in corporate carve-outs, restructurings and other special situations.
Torsten Gessner, Chairman and CEO of ThyssenKrupp North America, underscored that the divestment will enable ThyssenKrupp to better capitalize on growth opportunities in the region.
“ThyssenKrupp has a diverse footprint in North America. In the last fiscal year, we employed 24,600 in the United States, Canada and Mexico, and had sales of nearly 12 billion dollars. So as we are divesting ThyssenKrupp Waupaca, our other companies are adding jobs, increasing sales and investing in plant expansions and acquisitions across the region,” Gessner added.
Gessner heads ThyssenKrupp North America‟s new Regional Headquarters in Chicago. The headquarters, which will open in summer of this year, will provide integrated strategic direction and services for all ThyssenKrupp companies in North America, and help identify new markets and opportunities for growth in the region.
The closing of the transaction is expected during the second quarter of 2012 and is subject to customary closing conditions. ThyssenKrupp Waupaca, Inc. will be renamed Waupaca Foundry, Inc. upon closing of the transaction. Financial terms of the transaction were not disclosed.
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 Innovative Casting Earns ThyssenKrupp Waupaca International Award12/5/2011
ThyssenKrupp Waupaca, the largest producer of gray, ductile and compacted graphite iron in the world, received special recognition in an international casting award competition. The NEWCAST Award, presented by Messe Düsseldorf, the German Foundry Association and the German Foundrymen’s Society, highlights castings that illustrate the advantages of cast components over other manufacturing methods. Innovative castings are recognized in three categories; this year ThyssenKrupp Waupaca was honored in a special award.
ThyssenKrupp Waupaca’s Plant 2/3 facility in Waupaca, Wis. collaborated with John Deere engineers to design a single cast component that avoided the need for multiple cast, fabricated, and/or weldment parts. To make it castable, design changes were required to a 170-pound auxiliary drive casting for use on a John Deere tractor engine. This single casting is now common across multiple tractor options. Due to the complexity of the geometry and challenges drawing the pattern from the green sand mold, ThyssenKrupp Waupaca was able to successfully produce some exterior features of the auxiliary drive casting with Isocure cores that were then inserted into the green sand mold to produce the casting. “This project is an example of our team’s ability to innovate in a collaborative setting,” said Gary Gigante, CEO of ThyssenKrupp Waupaca. “Making changes this significant are the result of our team thoroughly understanding our customer’s product applications and using in-depth casting knowledge to provide a cost-effective solution.” Cast tractor auxiliary drives are not new, but the redesigned component is viewed as highly innovative and is a “best practice” leading to future collaborations between ThyssenKrupp Waupaca and John Deere. Benefits of the cast component are: - eliminates multiple part numbers and reduces inventory levels/costs and administrative costs;
- simplified assembly;
- accommodated space and weight restrictions;
- reduced overall costs.
ThyssenKrupp Waupaca, Inc., the largest independent iron foundry in the world, produces gray and ductile iron castings using state-of-the-art technology. Markets served include automotive, truck, agriculture, construction, hydraulics and commercial vehicles. With headquarters and three plants in Waupaca and one in Marinette, Wisconsin, as well as plants in Tell City, Indiana, and Etowah, Tennessee, the Foundry employs approximately 3,000. ThyssenKrupp USA, Inc. and its subsidiaries account for approximately 17,500 employees and annual sales of USD$6.7 billion in fiscal year 2009/2010.
# # # New ThyssenKrupp Waupaca Website Improves Visitor Experience11/1/2011ThyssenKrupp Waupaca, Inc., the world’s largest non-captive iron foundry launched a newly designed corporate Web site, on-line at www.thyssenkruppwaupaca.com. The site showcases industry-leading iron casting processes — including high volume melting capabilities, custom vertical green sand molding, and automated finishing — and technologies such as automated iron pouring, robotic core making, dimensional analysis, 3-D modeling and other testing measures. The new ThyssenKrupp Waupaca Web site meets the needs of purchasing managers and buyers searching for gray, ductile and compacted graphite iron castings. Navigation through the site has been designed for easier click-through to learn about the ThyssenKrupp Waupaca casting process and technologies, or find information about the Foundry’s exclusive Foundry 101 program. The site provides a greater level of information about gray and ductile iron castings. The History section was enhanced with more information and photography, and the Career sections provides an easier on-line application process.
ThyssenKrupp Waupaca, Inc., the largest independent iron foundry in the world, produces gray and ductile iron castings using state-of-the-art technology. Markets served include automotive, truck, agriculture, construction, hydraulics and commercial vehicles. With headquarters and three plants in Waupaca and one in Marinette, Wisconsin, as well as plants in Tell City, Indiana, and Etowah, Tennessee, the Foundry employs approximately 3,000.
### ThyssenKrupp Waupaca, Inc. Reopens Etowah, Tennessee Foundry and Adds 250 Jobs7/28/2011Reopening comes as result of increasing customer orders. ThyssenKrupp Waupaca, Inc., the world’s largest noncaptive iron foundry, today announced it is reopening its Etowah, Tennessee facility in the first quarter of calendar year 2012. The company will also hire 250 hourly employees to restart production at the foundry.
The facility had been idled in January 2010 as a result of a significant downturn in the North American automotive and truck markets and subsequent decrease in order volume. By the end of 2010, order volume recovered to near pre-crisis levels as a result of increased market demand and structural capacity adjustments, and has continued to increase in 2011. The decision to reopen the Etowah facility represents ThyssenKrupp Waupaca’s commitment to meeting the longterm supply requirements of its customers and confidence in future growth prospects.
“The reopening of our Etowah foundry is good news for our customers and for the state of Tennessee, but also for the men and women we will be able to put back to work,” said Gary Gigante, President and CEO of ThyssenKrupp Waupaca, Inc. “Our facility is one of the most technologically advanced in the entire iron castings industry, and we are proud to once again be open for business in McMinn County.”
Hiring of qualified maintenance and production personnel will begin in August 2011 with rehiring former employees impacted by the 2010 idling. Applicants can contact the ThyssenKrupp Waupaca Human Resources department at (423) 263-6000. Résumés can be submitted in person at the Etowah foundry, located at 134 Waupaca Drive, or by mail to P.O. Box 510, Etowah, Tennessee 37331.
Start-up of the facility will occur in two phases. Production of gray iron, a low-tensile form of cast iron used for components castings for such products as disc brake rotors and brake drums, will begin in early first quarter of calendar year 2012 and will reach full capacity by mid- to late-third quarter of calendar year 2012. Ductile iron, a higher tensile, more elastic form of iron used for castings for such products as differential cases and crankshafts, will be produced beginning in second quarter of calendar year 2012 with full capacity expected by first quarter of calendar year 2013.
Beginning in third quarter of calendar year 2011, ThyssenKrupp Waupaca will begin installing new melt, core and mill room equipment in the Etowah foundry for ductile iron production. Approximately 20,000-square-feet of manufacturing space will be added to the 270,000-square foot facility to accommodate this new equipment.
Products manufactured at ThyssenKrupp Waupaca’s Etowah foundry are used by the passenger car and light truck, material handling, agriculture, construction, hydraulic and commercial vehicle segments. At full production, the foundry will be adding a total of 200,000 tons of gray and ductile iron capacity to the U.S. market.
The ThyssenKrupp Group, based in Essen, Germany, is a global materials and technology company which consists of eight business areas. In fiscal 2009/2010 the company had annual sales of € 42.6 billion ($58.3 billion) and employed over 177,000. On May 13, 2011, the Supervisory Board of ThyssenKrupp AG approved a package of measures for the further strategic development of the Group. The focusing of the global portfolio includes the sale of ThyssenKrupp Waupaca, Inc. as part of a best-owner solution.
ThyssenKrupp Waupaca, Inc., the largest independent iron foundry in the world, produces gray and ductile iron castings using state-of-the-art technology. Markets served include automotive, truck, agriculture, construction, hydraulics and commercial vehicles. With headquarters and three plants in Waupaca and one in Marinette, Wisconsin, as well as plants in Tell City, Indiana, and Etowah, Tennessee, the Foundry employs approximately 3,000.
ThyssenKrupp USA, Inc. and its subsidiaries account for approximately 17,500 employees and annual sales of USD$6.7 billion in fiscal year 2009/2010.
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ThyssenKrupp Waupaca Receives Cost Savings Award From Kawasaki Motors Manufacturing Corp.5/12/2011Kawasaki Motors Manufacturing Corporation has named ThyssenKrupp Waupaca, Inc. winner of its 2010 Cost Savings Award, the only company worldwide to receive this recognition. This award was presented to ThyssenKrupp Waupaca at Kawasaki’s annual supplier conference in Maryville, Missouri on May 12, 2011. The yearly conference recognizes six Kawasaki suppliers in the areas of cost savings, quality, environment, and overall production.
ThyssenKrupp Waupaca’s Plant 3 foundry in Waupaca, Wisconsin was recognized for a reduction in per piece price and total manufacturing cost, while preserving gray iron casting quality. The cost saving is a result of a collaborative effort to enhance casting design and engineering, thus improving machine clamping. Tooling cost savings were also realized due to closely-held dimensions that minimized post-process machining requirements and extended tooling life. Suppliers are reviewed annually by Kawasaki Motors Manufacturing Corp., with a focus on customer service, product quality, cost, and productivity.
“Awarding our suppliers is a way of recognizing they are business partners with our company,” said Bev Myers, Kawasaki Motors Manufacturing Corp. “Building relationships with suppliers involves feedback between sales, production and purchasing and we value the service from ThyssenKrupp Waupaca.”
“We are proud to be honored for keeping quality high while providing a value-based product for Kawasaki,” said director of operations Mike Nikolai. “ThyssenKrupp Waupaca strives to provide the most consistent, high-quality iron castings in the world helping Tier 1 and OEM customers improve their bottom line.”
ThyssenKrupp Waupaca, Inc., the largest independent iron foundry in the world, produces gray and ductile iron castings using state of the art technology. Markets served include automotive, truck, agriculture, construction, hydraulics and a host of other specialties. With headquarters and three plants in Waupaca and one in Marinette, Wisconsin, as well as plants in Marinette, Wisconsin, Tell City, Indiana, and Etowah, Tennessee, the Foundry has approximately 3,000 employees.
### ThyssenKrupp Waupaca, Inc. to Add Jobs, Investment10/13/2010ThyssenKrupp Waupaca will invest $36.5 million in equipment upgrades to expand capacity at its 480,000 square-foot Tell City plant. "Indiana is leading the nation in job growth, at 3 ½ times the national average. The problem is the national average is far too weak. This vote of confidence from a world-class company is further evidence that our competitive advantage over other states is growing," said Daniels.
In addition to the Tell City location, which first opened in 1997, ThyssenKrupp Waupaca, Inc. is headquartered and has three plants in Waupaca, Wisc. as well as plants in Marinette, Wisc. and Etowah, Tenn. The company is part of ThyssenKrupp's Components Technology business area. The ThyssenKrupp Group, based in Essen, Germany, is a global materials and technology company which consists of eight business areas. In fiscal year 2008/2009 the Group had annual sales of $54.8 billion and employed more than 187,000 worldwide.
"We are extremely grateful to Governor Daniels and the Indiana Economic Development Corporation for their tremendous support of ThyssenKrupp Waupaca, Inc.," said Gary Gigante, president and chief executive officer of ThyssenKrupp Waupaca, Inc. "Tell City, Perry County and the state of Indiana has been outstanding partners throughout our history. The support provided by the Governor and his entire team will ensure that we continue to grow our operations and remain an integral part of the Indiana economy for many years to come."
Hiring at ThyssenKrupp Waupaca's Tell City plant is already underway for equipment operators, maintenance technicians and production workers. Interested candidates can obtain additional information on job profiles and required qualifications through the ThyssenKrupp USA, Inc. career website, www.thyssenkruppus.jobs.
The Indiana Economic Development Corporation offered ThyssenKrupp Waupaca, Inc. up to $1.55 million in performance-based tax credits based on the company's job creation plans. Perry County will consider additional property tax abatement at the request of the Perry County Development Corporation.
The largest non-captive iron foundry in the world, ThyssenKrupp Waupaca, produces gray, ductile and compacted graphite iron castings. Global markets served include automotive and light truck, commercial vehicle, agriculture, construction, material handling and other industrial sectors. With headquarters and three plants in Waupaca, Wis., as well as plants in Marinette, Wis., Tell City, Ind., and Etowah, Tenn., the Foundry employs about 2,900 people. For more information, visit http://www.thyssenkruppwaupaca.com.
The Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC. For more information about IEDC, visit www.iedc.in.gov.
### ThyssenKrupp Waupaca, Inc. Announces Key Staff Promotions6/14/2010ThyssenKrupp Waupaca, Inc., the largest independent iron foundry in the world, has announced the promotion of two employees in the company’s sales and supply chain divisions.
Rick Scherkenbach has been named Director of Sales, Light Vehicle Group. Scherkenbach, a 31-year veteran in various high-profile foundries, joined ThyssenKrupp Waupaca in 2009 and most recently served as the company’s Director of Marketing. In his new position, Scherkenbach will lead the global light vehicle sales team in serving original equipment manufacturers and their Tier 1 suppliers.
Scherkenbach’s predecessor as Director of Sales, Light Vehicle Group, John Wiesbrock, has been appointed Director of Global Supply Chain Management. In this role, he will oversee purchasing, customer service and logistics, and new product development through program management. Wiesbrock first joined the company’s sales team in 2002 and brings 25 years of manufacturing and machining experience to the Company.
ThyssenKrupp Waupaca, Inc. produces gray, ductile and compacted graphite iron castings. Global markets served include automotive and light truck, commercial vehicle, agriculture, construction, material handling and other industrial sectors. With headquarters and three plants in Waupaca, Wisconsin, as well as plants in Marinette, Wisconsin, Tell City, Indiana, and Etowah, Tennessee, the Foundry employs approximately 2,900. Visit www.thyssenkruppwaupaca.com.
# # # ThyssenKrupp Waupaca, Inc. Receives Bronze Level Caterpillar Supplier Quality Excellence Process Certification2/15/2010ThyssenKrupp Waupaca, Inc., the largest non-captive iron foundry in the world, today announced it has been awarded the Bronze Level Supplier Quality Excellence Process certification from Caterpillar Inc. This award was presented to ThyssenKrupp Waupaca in recognition of its commitment to providing the highest levels of products, quality and service to its customers at Caterpillar. Under the Supplier Quality Excellence Process, established by Caterpillar in March 2007, nominees undergo a thorough review of process management requirements and must clearly exceed expected supplier capability and performance factors. Award recipients are chosen by a global team comprised of experts in the fields of engineering, manufacturing, logistics and purchasing, and their final decision is based on the review of the nominees in the areas of service, quality and delivery performance.
“ThyssenKrupp Waupaca is honored that Caterpillar has demonstrated its confidence in our company by presenting us with the Bronze Level Supplier Quality Excellence Process Award,” said Gary Gigante, president and CEO of ThyssenKrupp Waupaca. “Caterpillar’s recognition of the quality of work performed by our team during challenging times for our industry is proof of our ongoing commitment to surpass the expectations of our customers.”
ThyssenKrupp Waupaca, Inc., the largest non-captive iron foundry in the world, produces gray and ductile iron castings using state of the art technology. Markets served include automotive, truck, agriculture, construction, hydraulics and a host of other specialties. With headquarters and three plants in Waupaca and one in Marinette, Wisconsin, as well as plants in Marinette, Wisconsin, Tell City, Indiana, and Etowah, Tennessee, the Foundry has approximately 2,900 employees.
ThyssenKrupp USA, Inc. and its subsidiaries account for approximately 17,000 employees and annual sales of USD$6.5 billion in fiscal year 2008/2009. Through its predecessor companies, ThyssenKrupp has been part of the U.S. historical landscape for over 170 years, dating back to 1837 when Alfred Krupp, founder of predecessor company Krupp, provided coin minting machine prototypes to the U.S.
The ThyssenKrupp Group, based in Düsseldorf, Germany, is a global materials and technology company which consists of eight business areas. In fiscal 2008/2009 the company had annual sales of € 40.5 billion ($54.8 billion) and employed over 187,000.
# # # ThyssenKrupp Waupaca, Inc. Receives Wisconsin Governor's Award For Excellence in Environmental Performance10/21/2009ThyssenKrupp Waupaca’s Plant 1 facility in Waupaca, Wisconsin was recently awarded the Wisconsin Governor’s Award for Excellence in Environmental Performance. This award, now in its 23rd year, was presented to just three companies throughout the entire state and recognizes the achievements of Wisconsin businesses and institutions for their leadership in the area of environmental performance. Award finalists were selected based on four criteria:
- Reduction of the degree and amount of waste toxicity;
- Economic performance as measured by profits generated, costs reduced and payback period;
- Transferability of the processes of techniques to similar applications for use by other industries, organizations or institutions; and
- Commitment by the applicant to helping other industries, organizations or institutions by sharing information and expertise.
Plant 1 was recognized by Governor Jim Doyle for its use of an innovative closed loop heat recovery system. Heat generated to melt iron used in the plant’s casting operations is moved through an emission control system which destroys the high concentration of carbon monoxide and captures particulate emissions in baghouse filters. Since these filters cannot receive the full load of waste heat and operate effectively, traditional practice has been to discharge the heat into the atmosphere. To receive significant levels of winter heat, ThyssenKrupp Waupaca installed a propylene glycol closed loop heat recovery stem in December 2008. The waste heat warms a water/glycol solution that is moved through coils installed in the facility to provide space heating.
This system provides approximately 70% of the plant heating requirements for a typical winter as well as the hot water needs of the facility. The project, with a cost of $1.8 million, yields approximately $900,000 in savings each year and has led to an annual reduction of 4,600 metric tons of carbon dioxide (the equivalent of gas emissions from 791 passenger cars).
About ThyssenKrupp Waupaca, Inc. ThyssenKrupp Waupaca, Inc., the largest non-captive iron foundry in the world, produces gray and ductile iron castings, using state-of-the-art technology. Markets served include automotive, truck, agriculture, construction, hydraulics and a host of other specialties. With headquarters and three plants in Waupaca and one in Marinette, Wisconsin, as well as plants in Tell City, Indiana, and Etowah, Tennessee, the Foundry has approximately 2,900 employees.
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