Franklin-based Krones Inc. plans to consolidate the production capabilities of W.M. Sprinkman at the company’s Elroy, Wisconsin facility as part of the launch of its new Krones Process Group North America.
“When we decided to acquire three process technology companies several years ago, we already had the vision of a strong, combined, high performing processing group in mind,” says Holger Beckmann, chief executive officer of Krones Inc. “With our wide-ranging expertise and highest commitment to customer satisfaction, we expect to further grow the process technology segment in the future.”
Krones, a manufacturer of packaging, bottling line, brew house and processing systems, acquired Waukesha-based tank manufacturer W.M. Sprinkman in 2018. The deal followed the acquisitions of Florida-based Trans-Market LLC in 2016 and New York-based Javlyn Process Systems in 2017.
In addition to moving work to the Elroy plant, which was part of W.M. Sprinkman at the time of the acquisition, Krones will also move work to Trans-Market’s facility in Tampa, Florida.
The 52,000-square-foot Waukesha facility, located at 404 Pilot Court, will close. Krones plans to continue sales, engineering and administrative functions for the business in the Waukesha/Milwaukee area.
Layoffs from the facility will start in December. The exact number of cuts is unclear as the company discusses new opportunities, including potential relocation, with employees, a spokesperson said. In a notice sent to state officials, the company said it would layoff 30 employees from Waukesha, including 10 welders.
The consolidation continues several years of change for the W.M. Sprinkman business. The company moved from Franksville to Waukesha in 2016 with nearly 120 employees. The acquisition by Krones took place in 2018 and then in early 2020 the building was sold to Madison-based SARA Investment Real Estate for $3.3 million.
In announcing the launch of the new process group, Krones touted the ability of it to provide more streamlined offerings.
“This launch brings together some of the best process system design expertise the industry has to offer,” says Victor Tifone, president of Javlyn Process Systems. “Going to market as one comprehensive process team gives us a heightened level of agility and responsiveness in serving our customers’ daily needs.”