Rea Magnet Wire to Sell Selected Assets to Elektrisola, Inc.
FORT WAYNE, Indiana, March 20, 2009
Rea Magnet Wire Company, a privately held corporation and #1 producer of magnet wire products in North America, announced today it has agreed to sell selected assets of its Rea Diversified Products Division (RDP) to Elektrisola, Inc., of Boscawen, New Hampshire. Assets included in the sale were specialty insulated fine and ultra fine wire materials as well as products primarily servicing the micro-coaxial cable industry. All other remaining products of the RDP Division will be consolidated into Rea’s other manufacturing facilities, including the New Haven Avenue, Fort Wayne, Indiana plant.
“Our total focus during these challenging economic times is to stabilize our business by providing value to our customers while protecting as many employment opportunities as possible. We believe that this transaction, and resulting consolidation, improves our competitiveness in the marketplace and financial viability for the future,” commented Chuck Fisher, CEO of Rea. “Additionally, in Elektrisola we have profound respect for their engineering and operating expertise. We wanted to be sure that our customers’ interests were well-served, and we are confident that Elektrisola will meet their needs now and into the future.”
While the sale of assets is positive for the industry and customers as a whole, unfortunately, it is no longer economically feasible to continue manufacturing operations at the Pontiac Street plant. “This was an extremely difficult decision for us as it affects approximately 85 employees,” said Chuck Fisher. Every effort will be made to assist affected employees with their transitions including the availability of special benefits.
Rea’s Corporate Headquarters, which is also located on Pontiac Street, will remain at its current location.