Rolling mill to reopen after judge OKs sale

Ex-Koenig & Vits workers eager to return

By: Charlie Mathews, Herald Times Reporter

MANITOWOC — Former employees of Koenig & Vits were pleased to shake hands Wednesday afternoon with new ownership of the closed aluminum rolling mill.

"I'm ready to go back to work tomorrow," said Mike Wergin, a shipping and receiving clerk who was one of about 86 employees laid off by former owner Tim Martinez in May.

After last-minute settlement language was approved by various creditors and Martinez, Manitowoc Circuit Court Judge Darryl Deets endorsed Monday's auction results, including Skana Aluminum Co.'s bid of $7.1 million.

In October, Martinez lost control of the company when Deets appointed a receiver to sell the plant and 100 acres on Mirro Drive. Martinez owed millions to various creditors, including $6.8 million to Community Bank & Trust in Sheboygan.

"I can't wait to get going," said Thomas Testwuide Sr., Skana chairman and CEO, told about 20 former Koenig & Vits workers who were in the courtroom, hopeful of a decision that would lead to reopening of the plant.

It won't happen immediately, said Robert Gamba, who is Skana's president and chief operating officer.   The former chief strategic officer for Martinez and Koenig & Vits said closing of the deal is set for between March 31 and April 16.

Then, the plant will be re-commissioned with equipment put into good working order and full production resuming in May.

"We already have commitments from five major  accounts, including Tramontina," Testwuide said.

A Texas-based cookware manufacturer, Tramontina USA will continue to lease 192,000 square feet of  the Mirro Drive complex.

Attorneys representing the Sheboygan bank, Tramontina, other creditors and the Department of Workforce Development — present on behalf of employees with wage claims against Koenig & Vits — each assured Deets the court appointed receiver-designed sale agreement met their approval.

While Skana officials can plan the steps necessary to get the mill back into production, negotiations will continue on behalf of several parties.

The exact amount ex-employees will collect in lost  wages has not been determined, though $150,000 has been put into an escrow account.

Manitowoc Public Utilities is seeking $301,000 for electricity and other services rendered.

"There are a lot of creditors in line ahead of us," said Kathleen McDaniel, city attorney, who is uncertain of how much money the city-owned utility will eventually receive.

"We want the place back up and running," said Manitowoc Mayor Justin Nickels, among the civic officials in the courtroom.

David Less, city planner, said the city would offer assistance with any environmental remediation, as well as short- and long-term financing.

The former chairman, president and CEO of Schreier Malting Co. in Sheboygan, Testwuide said his investment stems from Gamba's assurance that the 50-year-old manufacturing plant "is a little jewel that can be operated profitably if properly capitalized."

He vowed to supply the needed capital and corporate structure to rebuild the business. Testwuide expressed confidence in the work ethic and expertise of the aluminum mill workers.

Gamba said Skana officials hope employment numbers in the plant eventually return to former
levels.

That's just what Wergin wants to hear. The last six years have been challenging for mill workers as Koenig & Vits struggled to keep afloat and keep creditors at bay.

Wergin said he always has contended the plant could run efficiently and profitably. He believes
Gamba has the expertise to assure its future success.

A news release from Skana indicates the company is named after the tribal name for killer whales, that it said "are known for their intelligence, strength in numbers and swift powerful movements.

"The investors of Skana look to move swiftly to revive a business that can be a great asset to the
Midwest and to Wisconsin. With large capital commitments for year one and two, the leadership
team projects an extensive customer base with the potential for global exports."

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