RACINE, WI — Modine Manufacturing has created a new product-focused group to support the company’s efforts targeting the heating, ventilating and air conditioning (HVAC) equipment needs of the truck and off-highway markets. The company also announced a plan to relocate its Harrodsburg, KY-based research and development facility into its technology center in Racine, WI. The new group’s R&D activities, along with systems and applications engineering, will be located in Racine. HVAC production will remain in Harrodsburg.
The division will be led by Dr. Stephen B. Memory, PhD, P.E., a leading authority in vehicular HVAC. Memory is a nine-year employee at Modine who previously led the company’s HVAC advanced research and development activities in Racine. Memory, who holds 10 U.S. patents, has 12 patents pending, and who has been published in 45 journals and publications, received his BS and PhD degrees in mechanical engineering from the University of London, UK, and holds an MBA from the University of Wisconsin. Memory will report directly to Thomas A. Burke, Modine’s Executive Vice President.
David Rayburn, president and chief executive officer, said, “With these actions, our plans to revitalize and focus our efforts on untapped opportunities in the truck and off-highway HVAC markets are now a reality. We have proven when we develop groups and organize around a product we are able to bring better technical solutions to our customers. We are confident this will result in similar success. The truck and off-highway HVAC group has a proven and well-respected leader in Steve Memory. His group, pulled from Modine’s current employee base and complemented by new hires with added critical skills, will be truly world-class. They will have the best R&D support and a terrific manufacturing facility to better serve current customers and win additional HVAC business. At the same time we are taking another step to improve our overall cost position, which is integral to remaining competitive in today’s marketplace.”
Rayburn added, “The relocation of the U.S. HVAC R&D facilities to Racine, along with the related systems and applications engineering support, is timely for several reasons. First, our Racine-based facility has matured – enabling the addition of more assets and personnel. Second, we’ve developed new CO2 technology that has been well received in the marketplace. With the move, we’ll have a focused effort in Racine to support this new product. As well, our new U.S.-based group coupled with our recently acquired Korean-based technology group – which is widely known for its expertise in vehicular HVAC systems – puts us in a strong global market position.”
The company will incur approximately $1.2 million of cash expense over the next nine months and expects – after hiring additional personnel and acquiring new testing equipment – an approximate net $0.9 million in annualized savings. The action will result in a net reduction of approximately 12 salaried positions.
For information about Modine, visit: www.modine.com.
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