W&D Weekly - January 10, 2007
Vol 2 | Num 2
(Print All Articles)

Pella Shifts Plant to Vinyl Production

Pella Corp. will dedicate its Story City, IA, plant to solely vinyl production this year, adding about 100 jobs in the process. Formerly, the Story City facility produced Pella’s wood window lines, but market demand encouraged the company to shift that location’s focus to production of the ThermaStar by Pella vinyl product line, which is sold through Lowe’s Home Improvement retailers, the company reports. It expects the transition to take place slowly throughout this year.

Pella debuted the ThermaStar line in 2003. This is the first time Pella will produce vinyl products in Iowa, with other vinyl production locations in Oregon, Arizona, South Carolina, Pennsylvania and Kentucky.

“Pella produces a variety of types and styles of windows and doors to meet virtually any design or budget need,” says company spokesperson Kathy Harkema. “Vinyl windows and patio doors are an important part of Pella’s product mix, in addition to wood and fiberglass products.”

The Pella, IA-based manufacturer will transfer the wood production formerly conducted at the Story City site to its location in Carroll, IA, which already produces the Pella ProLine wood products. The shift will result in an additional 100 jobs at the Carroll plant, said Harkema.

Pella’s total workforce nationwide is 9,000, up from 6,800 in 2002, the Des Moines Register newspaper noted in a recent article announcing the job creation. The 100-person boost to the Story City plant will add to the 300 workers already at that location, the paper said.

Atrium Closing Connecticut Site

Atrium Cos. will close its nearly 80,000-square-foot vinyl window manufacturing facility located in Shelton, CT, by March. The closure will affect about 60 employees, the company reports. Former Shelton customers will be transitioned to the company’s Welcome, NC, facility, which already produces more than half of the total product for customers in the Northeast region.

“Market conditions in the Northeast and the capacity for additional volume in North Carolina convinced us that this is the right decision for our company,” says Bob Burns, Atrium’s COO. “The North Carolina operation can absorb this business and still provide one-week delivery to all customer locations.”

Based in Dallas, Atrium produces vinyl and aluminum windows and doors for the residential market. The company operates 80 manufacturing and distribution centers in 23 states. The Connecticut plant was at one time Bishop Manufacturing, which Atrium acquired in the ’90s.

Jeld-Wen Leases Ohio Site

Happening concurrently with its plans to expand in Vermont with a new door manufacturing facility, Jeld-Wen has also picked up some additional space in an industrial park in Etna, OH, according to the company. The Columbus Dispatch newspaper reported that company intends to use the space for an additional manufacturing and distribution center, but Jeld-Wen has not released details regarding plans for the building. Jeld-Wen already has a 250-person window manufacturing operation in Mount Vernon, OH, located northeast of Columbus.

“The details on the use of the building, when we will occupy and the number of employees is still in planning,” says spokesperson Elizabeth Souders.

The Klamath Falls, OR-based producer was granted a tax credit by the Ohio Department of Development to set up shop in Etna, near Columbus. The industrial park management company, ProLogis, confirmed to the paper that Jeld-Wen leased more than 200,000 square feet at the park. The manufacturer was also considering sites in Indiana and Michigan, according to a November article in the Dispatch.

Jeld-Wen announced at the end of December that it is expanding in Vermont with an additional 200,000-square-foot interior door plant in Ludlow. The company already produces interior doors in nearby Springfield, VT.

Advanced Global Technologies Acquires MD Casting

Advanced Global Technologies acquired MD Casting Inc. from Atrium Companies Inc. in a transaction effective the last day of 2006. Fort Worth, TX-based MD Casting specializes in the manufacture of zinc die-casting, metal stamping and injection molded components for use in the window and door and industrial markets. The company did not disclose terms of the deal.

“[This acquisition] enables us to blend AGT’s offshore manufacturing expertise with MDC’s domestic manufacturing expertise, which in turn will mean greater value for our customer base,” said Rick Lipski, president and CEO of AGT, in a company press release. “In addition, MDC will support AGT’s offshore supply with domestic manufacturing and warehousing to assure our customers a continuous, uninterrupted supply of product.”

The acquisition also expands AGT’s existing product offerings to include patio hardware, rollers, casement hardware and specialty components, Lipski said.

AGT, with offices in Mount Laurel, NJ, and Shanghai, China, provides global sourcing and procurement services to domestic manufacturers. Its core products include aluminum and vinyl extrusions, screen cloth, and die-cast, forged, injection molded and stamped components to the fenestration industry.

Nardelli Resigns as CEO of The Home Depot

Facing heat from investors for earning $225 million while the national home improvement retailer’s stock withered, Robert Nardelli has reached an agreement with The Home Depot to resign as its president, CEO and chairman, effective January 2. Frank Blake, formerly the company’s vice chairman of the board of directors and executive vice president, succeeded him to the top leadership position.

“I am honored to lead this exceptional company and build on Bob’s significant achievements,” Blake says. “The Home Depot has a strong core business and exciting opportunities in its adjacent businesses. I believe the company continues to have tremendous potential for growth and that we have an exciting future ahead of us.”

Nardelli and the company negotiated a separation agreement that will pay him for entitlements included in his pre-existing employment contract, signed in 2000. In all, these considerations equal about $210 million. Nardelli has agreed to not compete with the company for one year, not to solicit employees or customers of the company for four years, and other restrictive covenants, the company reports.

News, Ideas and Information from around the Web

U.S. Stocks Rise on Home Depot CEO Change, Manufacturing Data
from Bloomberg.com
Hurricane Center Chief Issues Final Warning
A departing Max Mayfield is convinced that the Southeast is inviting disaster
from latimes.com
New-Home Sales Rise 3.4 Percent in November
from National Association of Home Builders
More Troubles Ahead for Home Builders, Say Turnaround Pros in Annual Poll
from Turnaround Management Association
Canadian Housing Starts in 2006 Reach Their Second Highest Level in Nearly Two Decades Despite Cooling in December
from Canada Mortgage and Housing Corporation

...

U.S. Stocks Rise on Home Depot CEO Change, Manufacturing
Data
from Bloomberg.com
U.S. stocks rose on the first trading day of the year, sending the Dow Jones Industrial Average to a record, after Home Depot Inc. replaced its chief executive officer and manufacturing unexpectedly expanded in December... read more

Hurricane Center Chief Issues Final Warning
A departing Max Mayfield is convinced that the Southeast is inviting disaster
from latimes.com
Frustrated with people and politicians who refuse to listen or learn, National Hurricane Center Director Max Mayfield ends his 34-year government career today in search of a new platform for getting out his unwelcome message: Hurricane Katrina was nothing compared with the big one yet to come... read more

New-Home Sales Rise 3.4 Percent in November
from National Association of Home Builders
The U.S. Commerce Department reported today that sales of newly built, single-family homes rose 3.4 percent to a seasonally adjusted annual rate of 1.05 million units in November. Sales also were revised upward for the three previous months... read more

More Troubles Ahead for Home Builders, Say Turnaround Pros in Annual Poll
from Turnaround Management Association
Skittish consumers are a significant factor in the top choices for the most troubled industries in 2007, according to respondents to the Turnaround Management Association's annual Trend Watch poll. Potential homebuyers and U.S. automobile owners seem to be in a "wait-and-see" mode, adding to the current distress in those industries... read more

Canadian Housing Starts in 2006 Reach Their Second Highest Level in Nearly Two Decades Despite Cooling in December
from Canada Mortgage and Housing Corporation
New home starts are estimated at 227,400 in 2006, surpassing the level in 2005, reaching their second highest level in nearly two decades. However, the seasonally adjusted annual rate of housing starts decreased to 211,500 units in December from November's 229,300 units, according to Canada Mortgage and Housing Corporation... read more