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Sorting out the brands under the MAG banner.

If 2005 was spent by Maxcor's MAG Industrial Automation Systems in acquiring machine-tool entities, it seems that this year so far has been one of consolidation.

Small wonder. With $1.2-billion in estimated annual revenues, the corporation ranks as the seventh-largest builder on this publication's Machine Tool Scoreboard. Two years ago it didn't exist as a machine-tool company. So a sorting through the capabilities of its various brands has been inevitable.

More recently, its MAG Powertrain Business Unit has said it has successfully integrated the former ThyssenKrupp units. The automotive-powertrain group, run by president Henry Goffaux and headquartered in Sterling Heights, Mich. along with its parent company, includes such well-known brands as Cross Huller (whose acquisition from ThyssenKrupp Metalcutting was finalized last October), Ex-Cell-O (acquired from IWKA this past January), and Lamb (that was part of Cincinnati Lamb, purchased from Unova in April 2005).

By the numbers, MAG Powertrain ( employs 1,350 out of a total MAG Industrial Automation workforce of 3,500, and 800 of the Powertrain workers are located in the German plants at Ludwigsburg and Eisligen.

On the heels of a major reorganization, the business unit was particularly proud to have been presented with a supplier recognition award from American Axle & Manufacturing, one of four the Tier One automotive supplier handed out. Powertrain Technologies built or retooled machining systems for different carriers that have produced major gains in equipment utilization at AAM, and its Ex-Cell-O subsidiary advanced AAM's introduction of "minimum quantity lubrication" machining. In accepting the award, Steve Arksey, president of Powertrain Technologies North America, observed that globalization and consolidation is a stark and continuing reality, and that his team focused on technology and speed.

Over at another MAG Industrial Automation Systems business unit, Maintenance Technologies announces that it's expanded both its brand coverage and its product/services portfolio. The unit, headquartered in Hebron, Ky., across the Ohio River from Cincinnati, is founded on the aftermarket business originally started by Cincinnati Milacron.

Bill Horwath, president of Maintenance Technologies, explains that his company "is about much more than simple maintenance. Our focus is on minimizing the total cost ownership," he says, and that includes tool selection, software optimization, and adding sensors. "We also have complete rebuilding, remanufacturing, and retrofitting capability," Horwath adds.

Again, by the numbers, Maintenance Technologies globally stock $44-million worth of inventory with over 1-million part numbers; there are 250 service engineers around the world along with factory trained technicians and more than 50 tech-support specialists.

In addition to supporting all existing MAG-IAS brands (Cincinnati, G&L, Fadal, Hessapp, et. al.), the unit ( also supports a long list of "legacy" machine-tool brands. These include Avey, Bendix, Bickford, Buhr, Colonial Broach, Davis Tooling, Drillunit, FMT, G.A. Gray, Gisholt, Heald, Kearney & Trecker, LaSalle, Marwin, Michigan Special, Modig, R&B Machine, and Warner & Swasey.

Across the board, some of the business units of MAG Industrial Automation will find themselves working with a new provider of computer engineering services--based in India. The corporation has announced a multi-year strategic relationship with QuEST Ltd. (Bangalore, India), which will provide MAG with support in the form of CAD, finite-element analysis, and product detailing support (in the product-design stage) and cycle-time estimation, fixture design and manufacturing, and tooling development (in the manufacturing-support stage).

Engineering-services firm QuEST (, founded in 1997, will also host a technical demonstration center run by MAG. "Increased outsourcing activity to India by the aerospace and automotive industries has driven demand for machine tools, say MAG-IAS president Roger Cope, who says his company is optimistic about expanding its installed base in the Indian market.

In addition to the powertrain and maintenance-technologies unit, MAG-IAS's other units are machining-center specialist Blue Technologies (Fadal and Cincinnati UK), high-volume equipment unit Specialty Machining Technologies (Witzig & Frank and Hessapp, and Cincinnati Technologies (Cincinnati Machine, Cincinnati Automation & Test, and G&L).

Meanwhile, Milacron, Inc. (Cincinnati, Ohio), the plastics-processing-equipment and industrial-fluids manufacturer, from which MAG Industrial Automation Systems' Cincinnati Machine separated when it was bought by Unova in 1998, has been having its difficulties with Wall Street. The company, which is listed under ticker symbol MZ, in late August was notified by the New York Stock Exchange that it has fallen below the NYSE's continued-listing standard for minimum share price ($1.00) and could be de-listed. Milacron replied that will be completing a restructuring expected to save $15-million annually; that ought to return the company to profitability in 2007 and bolster the share price.

News roundup.
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Publication:Metalworking Insiders' Report
Date:Aug 30, 2006
Previous Article:Factory orders up in June.
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