For Immediate Release
Neal Verfuerth, Orion Energy Systems, 920-892-9340
Orion Makes Plans For Future Growth
April 2, 2004. Plymouth, WI. Orion Energy Systems announced today that it is acquiring the majority interest in Koenig and Vits. Orion expects to keep the historic Koenig and Vits name. The acquisition of the former Mirro Plant assets, includes 160 acres of real estate, 1,000,000 square feet of manufacturing space, 250,000 square feet of separate warehousing, and a large amount of aluminum rolling and manufacturing equipment.
“We think that this is good for everyone involved, including the City of Manitowoc, the current and future employees and shareholders, the State of Wisconsin and Orion,” stated Neal Verfuerth, President of Orion Energy Systems.
Orion will be infusing significant cash and other assets into K&V and substantially increasing the number of employees. With current supplies running 16 weeks behind demand, Orion believes that the ability to have an excess of aluminum coil necessary to run a rolling mill means Orion and K&V will be able to take advantage of the prospect of higher demand and higher prices of aluminum.
Overall, Orion expects to add a significant amount of jobs both in the rolling mill and the manufacturing of energy efficient lighting, which will be good for the local economy. Orion has quadrupled the number of its employees at its Plymouth facility over the last two and half years ago.
With the likelihood of significant sales increases provided by strategic partnerships, Orion was planning to build a new manufacturing facility. With this purchase, no new facility or construction lag is necessary.
As a bonus, Orion will be able to save on projected storage, transportation, and rent costs. Orion expects to save additional money on the rolling mill portion of the business, by applying automation and energy efficiencies to its manufacturing processes.
Orion will also be able run a reclamation business for discarded old lighting fixtures. With the value of scrap metal in today’s market, Orion expects to generate significant profits even after subtracting for shipping and handling costs. Lastly, Orion will be able to use its new manufacturing facility for a sales tool. While intangible, Orion can now show large industrial customers a much larger manufacturing facility with enormous production capabilities. While Orion has not forecast any profit from the rolling mill, it can be expected to become a sales and revenue source just like it was when Newell operated it.
All totaled, the acquisition of a majority interest of the Mirro/Newell property is expected to provide several large benefits for Manitowoc employment, the City of Manitowoc and the shareholders of K&V and Orion, both tangible and intangible.
Orion Energy Systems has been innovating in the energy business since 1996. The company recently won the Wisconsin Manufacturer of the Year Grand Award in the Emerging Growth category, given by the Wisconsin Manufacturers and Commerce Association, the Wisconsin Business Friend of the Environment Award, was chosen as a “Success Story” for the 2002 Governor’s Summit on Capital, and owns numerous patents.
Orion is an energy systems company, which manufactures and markets energy efficient lighting solutions for the manufacturing, distribution center, warehousing, commercial, school, and gymnasium market. Orion provides capacity displacement solutions for supply side management, transmission management, and demand side management for the electricity industry. For more information, visit the web site at www.oriones.com.