Modine plant closing in Washington will idle 245 Iowa workers

A Wisconsin company is planning to close its manufacturing operation in Washington, Iowa, over a two-year period, idling about 245 full-time employees.

Modine Manufacturing of Racine, Wis., said its decision to shutter the plant - the largest employer in Washington County - is dependent on the conclusion of bargaining with the union at the facility. The plant makes liquid charge air coolers, plate oil coolers, and fuel coolers for the automotive, commercial vehicle, and off-highway markets.

Modine plans to transfer the Washington, Iowa, production to other facilities in North America, including those in Nuevo Laredo, Mexico; and Joplin and Jefferson City, Mo.

Scott Wollenberg, Modine regional vice president - Americas, said in a news release that the decision to close the Iowa plant was difficult.

'Our analysis of Modine's global product lines and North American manufacturing strategy led us to conclude that the best long-term solution for Modine and its shareholders is to consolidate all the Washington products into other North American facilities,” Wollenberg said. 'Closing the Washington plant will help us rationalize production, maintain the scale we need in our manufacturing operations and improve our overall competitiveness and profitability.”

The company said it will assist affected employees during the transition.

Modine expects to incur a charge of approximately $2 million in the first quarter of its 2016 fiscal year, primarily related to anticipated severance payments. The company expects to incur total closing costs of approximately $3 million.

Modine anticipates it will generate annual savings of at least $9 million once the plant closing is completed in fiscal 2018.