Compo Steel Products Inc. announces $25 million in new contracts

MILWAUKEE, Wis. – Compo Steel Products Inc. announced today it has been awarded two major contracts valued at $25 million over the next six years. Company officials said the new contracts could lead to the creation of 100 jobs in the industrial heart of Milwaukee’s Riverwest neighborhood.

“This is certainly great news for our company, for our employees and for our community,” said David Guerrero, Compo president. “This new business represents a significant growth opportunity for us.”

Compo, a 51-year-old metal fabricating firm, currently employs 50 at its 3637 N. Holton Street plant. The company’s sales will more than double over the next six years as a result of the new contracts.

“This is a great day for the City of Milwaukee,” said Milwaukee Mayor Tom Barrett. “I commend Compo for its efforts and thank it for the growth and jobs that will be created as a result of these new contracts. This is exactly what our city needs right now.”

Compo has been awarded a six-year contract to manufacture large steel electrical lockers for locomotives produced by the Electro-Motive Division of General Motors. The lockers will be utilized in Electro-Motive’s new locomotives that have been designed to meet new emissions standards set by the Environmental Protection Agency (EPA) for 2005.

Compo also has been awarded a five-year contract to construct large weldments for the Panama Canal, which is being upgraded to improve efficiency. The weldments will be used to convert the canal’s 90-year-old locks from electro-mechanical to hydraulic systems. The Panama Canal contract represents Compo’s entry into the world export market, a trend the company hopes to build on. “We know there are tremendous opportunities globally that we can go after to grow our business,” Guerrero said.

Compo manufactures steel electrical enclosures, fuel tanks, locomotive parts, sheet metal products engine shrouding and custom metal fabrications for customers in North and South America.
The company utilizes state-of-the-art equipment such as automated laser cutting equipment and 3-D solid-modeling engineering software. Compo relies on the principles of continuous improvement and lean manufacturing to improve efficiency and quality.

The expansion of the company’s workforce is a challenge, and Compo plans to continue to tap the resources offered by the Riverworks Industrial Center to assist them with job applicant screening. Company officials said they are exploring the availability of city, state and federal grants or loans to train new employees and help finance capital improvements.

Compo moved its operations in 2001 to the former American Motors plant site on Holton Street. Today the plant that had sat empty since 1983 is a bustle of activity. Steel sheets, plates and various steel shapes are cut, formed, welded, painted and assembled. Large steel parts and
products, some that weight as much as 8,000 pounds, await shipment. In the past Compo has built welded structures that weigh 94,000 pounds.

The Holton Street location has a rich manufacturing history, dating back to 1906, when a stone and marble company opened there. The marble cut in the early 1900s – visible in the Compo reception area – was used extensively in the finest Milwaukee buildings, such as City Hall and other landmarks. It is believed that the building is one of the first ever constructed of steel-reinforced concrete.

The company is proud of its dedicated and diverse workforce.

“These contracts are a vote of confidence in our company and our highly-skilled employees. We’re committed to excellence and to producing the best possible products for all our customers,” Guerrero said. “It’s also exciting for us to be playing a role in the revitalization of this neighborhood and in creating good manufacturing jobs in the inner city.”