Racine-based Modine Manufacturing Company has entered into a strategic partnership and license agreement with Advancoat LLC and as a result, plans to close its Pompano Beach, Florida facility, the company announced today.
Advancoat is an engineering company that provides corrosion protection and indoor air quality solutions for the HVAC and refrigeration industry. The new agreement will allow Advancoat to provide coating services to the South Florida market using Insitu, Modine’s proprietary sprayed applied coating system, according to the announcement.
Following the agreement, Modine will close its Pompano Beach Florida facility and direct customers in the market either to Advancoat or Modine’s facility in Tampa, Florida, a Modine spokesperson said.
The Pampano Beach facility has 7 employees and is relatively small compared to the company’s Louisville, Kentucky facility, which is the headquarters for Modine’s coatings business, a spokesperson added.
“Running this very small operation in South Florida wasn’t economically viable and moving to a license agreement was a better path for us,” a spokesperson said.
The measure follows an active period in Modine licensee growth, which has resulted in more than 90 licensed applicators in the Americas region, according to the company.
“This is an important and timely step in our global coatings growth strategy,” Modine CIS Coatings vice president Mike Powell said in a statement. “Partnering with a well-established firm like Advancoat ensures that all of our South Florida customers will continue to have uninterrupted access to the Insitu corrosion protection products and to receive the high-quality coating services they have come to expect.”
Modine specializes in thermal management systems and components including engineered heating and cooling components, original equipment products and systems. The global company, with operations in North and South America as well as Europe and Asia, had revenues of $1.8 billion in 2021.