A. Finkl & Sons Co. has signed an agreement to be acquired by SCHMOLZ+BICKENBACH AG, a leading global producer of high-grade steels headquartered in Dusseldorf, Germany. With the acquisition of Finkl, SCHMOLZ+BICKENBACH would become the world's largest tool steel producer.
Finkl, a dominant presence on Chicago's North Side for more than 100 years, has outgrown its present location and sought a partner with the same commitment to excellence to make the necessary investments in construction of a new plant, the company said in announcing its merger plans.
Finkl says that a key benefit of a new facility will be the ability to greatly expand the size of its facilities, which are currently limited to about 200,000 square feet under roof. A new plant would also allow for contiguous sequential operations in melting, forging, heat-treatment and machining — operations that are disconnected at Finkl's current plant. Finkl also has significantly larger electricity needs than can be supplied at its present location.
One plan under consideration is to relocate Finkl to Chicago's South Side at the site of the former Verson Steel plant, which has 500,000 square feet of vacant manufacturing space. Finkl acquired the 44-acre site last June. The company is also evaluating the possibility of moving to a 46-acre site in Sorel-Tracy, Que., adjacent to the Sorel Forge facility that Finkl purchased in 2004. The Canadian site, which Finkl has under contract, formerly housed a Slater Steel plant.
“Finkl has been a Chicago company since it was founded in 1879 by Bavarian immigrant Anton Finkl. With the help of the City of Chicago, and our skilled workforce, we have been able to remain in Chicago and grow our business over the past two decades,” said Joe Curci, President of A. Finkl & Sons. “Over that time, our sales have grown from $40 million to more than $260 million this year.”
“Our strong preference is to remain in Chicago, and we look forward to working with the City and the State of Illinois in exploring the potential of a new plant on the South Side,” Curci said.
The decision on where to relocate will be made in consultation with existing management and the new owners, said Curci, adding that the subsequent disposition of the North Side property would be subject to future discussions with the City of Chicago.
The new facility will more than double Finkl's manufacturing capacity, which is required to support its existing product lines and allow for expansion into new markets and the global marketplace. The acquisition is expected to close in early 2007, with construction of a new integrated steel works commencing shortly thereafter once site selection has been finalized.
A. Finkl & Sons Co. is a specialty steel forging company on Chicago's North Side. With 900 employees worldwide and 350 in Chicago, Finkl is North America's premier producer and global distributor of hot work die steels, plastic mold steels and custom open die forgings.
SCHMOLZ+BICKENBACH has consolidated sales of approximately EUR 3.5 billion ($4.7 billion) and 10,000 employees. The company is one of the world's largest producers of stainless long products with a global distribution network on all continents.