Beloit-based manufacturer Regal Rexnord is planning to shutter its West Milwaukee plant located at 4800 W. Mitchell St.
There are approximately 55 employees represented by the United Steelworkers at the West Milwaukee facility, which produces industrial chains, said Tim Reiter, staff member at the United Steelworkers sub-district 7 office in West Allis.
As of Thursday, no WARN notice for the closure had been filed with the Department of Workforce Development.
“As of (Wednesday), they (Regal Rexnord) were still trying to find a definitive closure date,” said Reiter. “It will be a quick closure that should be wrapped up by the end of this calendar year.”
The work being done at the West Milwaukee plant will be moved out of the U.S. to a Regal Rexnord plant in Mexico, according to the union.
“They cited a deteriorating facility,” said Reiter. “They said because of the investment they would have to make into the facility, they don’t see it as viable. The building is older. They cited that they needed a new boiler, a new roof and some other issues with the property.”
The United Steelworkers are working closely with the nonprofit WRTP/Big Step to connect dislocated workers with nearby union jobs.
Regal Rexnord has the headquarters for its motion control solutions business at 111 W. Michigan St. in downtown Milwaukee. The company also has a facility at 3001 W. Canal St. in Milwaukee, as well as locations in New Berlin and Glendale.
When plans to combine Milwaukee-based Rexnord Corp.’s process and motion control business with Regal Beloit became a reality in 2021, Louis Pinkham, chief executive officer of Regal Beloit, said the company expected to generate around $120 million in annual cost synergies from the deal within three years. Those synergies would primarily be in the areas of procurement, footprint consolidations and selling, general and administrative expenses.
“It’s really unfortunate that Regal Rexnord didn’t invest more into the (West Milwaukee) facility because the company is profitable and the facility is profitable,” said Reiter. “If they would have invested in this facility, this never would have happened, but I’m confident the Steelworkers will be able to find employment for everyone within another USW facility in the area.”
Regal Rexnord did not respond to a request for comment on its plans to close the West Milwaukee plant.
