Making friends is Skana's mission

New beginning for 50-year-old Manitowoc aluminum mill

By: Charlie Mathews, Herald Times Reporter

Name of business: Skana Aluminum Co.

Ownership and origins of the business: Formed in 2010, there are 12 shareholders who acquired the assets of the former Koenig & Vits aluminum rolling mill for approximately $7 million out of receivership on April 23.

Tim Martinez, former majority owner, had ceased production in May 2009.

Skana Aluminum owns a total of 625,000 square feet of indoor production space on 130 acres. Tramontina USA, a cookware manufacturer, leases approximately 200,000 square feet.

Key executives include Thomas R. Testwuide Sr., chairman and chief executive officer; Robert Gamba, president and chief operating officer; Ken Kazmierczak, chief financial officer; James M. Dockey, senior vice president-sales and marketing; Jay Hetland, vice president-engineering; and Jerry Keehan, vice president-manufacturing.

"We put together $25 million before we opened the doors" and resumed operations in July, Testwuide told last week's Business Connects with Government luncheon attendees.

A key component of financing was a 15-year loan guarantee from the U.S. Department of Agriculture.

Gamba said he and other potential investors were able to determine pre-acquisition key mechanical and electronic equipment that had been idled were in serviceable condition.

Skana officials also performed a thorough environmental assessment. A state "brownfields" grant will pay for excavation of equipment and liquids that appear to have been buried outside the plant.

"It is important for us to run a clean operation that won't pollute the local environment," Gamba said. Studies have shown no leakage of encapsulated liquids into the water table.

Location: 2009 Mirro Drive, Manitowoc

Phone number: (920) 482-0599

Website: www.skanaaluminum.com

Hours and days of operation: Skana Aluminum currently has 53 employees. Gamba said the company hopes to add another 10 employees in the next several months as production is ramped up.

The mill produced 3 million pounds in July, its first month back in operation, and anticipates 4 million pounds or more in August.

General production job titles include melters, casters, mill operators, press operators, annealers, forklift operators, shipping-receiving packers and general equipment operators.

Other employees are in sales, finance and administration, and engineering.

Services provided-products sold: Skana Aluminum produces aluminum coils and narrow strips, as well as "blanks" that can take the form of circles, squares, rectangles or custom shapes stamped at Skana.
The company has purchased a cut-to-length line to give it the ability to produce flat, 4-by-12-feet sheets.

Skana can produce a wide range of thickness ranging between 0.012 and 0.190 inch.

Aluminum comprises more than 95 percent of the composition of the coil metal and other products. However, various custom alloys with different properties can be made with the addition of manganese, magnesium, copper, iron, titanium, boron or other metals.

While the mill has traditionally produced coil metal for the cookware industry, it has the ability to serve other distribution markets, Dockey said.

How has business changed since opening: Gamba and Dockey stressed that several production processes have been changed to enhance the quality of the variety of products it can create for its clients. Goals include reduce scrap and increasing market acceptability.

Who is the competition and from where: Among Skana's North American competitors are Alcoa, Aleris, Alcan and Novelis. Gamba believes the competition is fierce, but clean.

"However, what we specialize in doing in this mill is not often done out of their mills," Gamba said.

He said industry statistics in the past couple years have shown a decline in aluminum exported into the U.S. because of unattractive currency prices and expensive shipping costs passed on to American customers.

Gamba said American manufacturers prefer to buy from domestic U.S. mills and with Skana's reduced lead time, "it adds up to a fairly attractive market for us … people are now coming to us to supply their needs."

Keys to future success: Gamba and Dockey said Skana must continue its capital expenditure program to add new capabilities of manufacturing different types of products.

It has invested about $150,000 in testing equipment to assess product consistency and quality.

"We must be vigilant about our succession program," Gamba said, noting the average age of the workforce is about 50. He said it will be important to attract younger employees for Skana's future sustainability.

"We are extremely grateful for the work force we have … I don't think I've ever such a good bunch of skilled, dedicated employees," Gamba said. "They know how to do their jobs and do it with such pride and good attitude, going above and beyond."

What is enjoyable: A former commodities trader, "pushing money around," Gamba said he enjoys the fact that Skana Aluminum "is creating something really useful and adding value to the process."

Dockey said it is enjoyable to help create a culture at Skana emphasizing customer service and respect for each other. "We want this to be a fun place to work," he said.

"Making friends is our mission" is Skana Aluminum's motto, and it is commited to satisfying customers.

"If the company is employee and customer focused at the same time, everything else will follow," Gamba said. "There's no limit to what we can achieve here."

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