Issue link: http://www.insightdigital.biz/i/389272
40 | I NSIGH T • O c t o b e r 2 0 14 w w w . i n s i g h t o n b u s i n e s s . c o m I N S I G H T O N E C O N O M I C DEVELOPMENT B y S e a n P. J o h n s o n I t's said that building good relationships requires a generous cycle of give and take. at would indicate there are good things coming from the newly- minted relationship between Waupaca Foundry and its new owner, Hitachi Metals Ltd., of Japan. Waupaca Foundry has plenty to give, particularly the expertise it has honed as the largest iron foundry in the world and North America's leading supplier of iron castings to the automotive, agriculture, construction and manufacturing industries. As for Capital Partners to Hitachi Metals was announced in mid-August and is expected to close during the fourth quarter of 2014. KPS acquired the foundry from the Germany-based yssenKrupp in 2012. Growth attracts buyers During its ownership, KPS supported the foundry management's plans for capital upgrades and operational improvements that resulted in a 40 percent boost in profits over that two- year period and more than 200 jobs across the company's operations. Waupaca Foundry posted sales of more than $1.74 billion in its most recent fiscal year. e improvements and growth of the past two years made the foundry an attractive acquisition for Hitachi, which had been looking for an opportunity to grow its business into the North American market. "We fit the checklist — we're in North America, we do iron and we are a foundry," Gigante says. "From our perspective, they are a strong company that understands foundries." at should lead to long-term stability for the foundry, its customers and its employees. Indeed, most employees won't notice any difference unless they happened to run into one of the Hitachi representatives that visited Waupaca in late August. Forging a better future Sale to Hitachi positions Waupaca Foundry for global growth C O U R T E S Y W A U PA C A F O U N D R Y. P H O T O G R A P H E D B Y M I C H A E L L E S C H I S I N , I M A G E S T U D I O S opportunities to take, Hitachi Metals has existing relationships around the world in areas the foundry has identified as opportunities for future growth. A "win-win situation" may be an overused business cliché, but in this case it fits, says Gary Gigante, president and CEO of Waupaca Foundry. "It's just a really great fit and something we have worked very hard to make happen," Gigante says. "ey want to grow in North America and we want to grow globally." e sale — for a reported $1.3 billion — of the foundry from KPS Sparks fly as slag is removed from an automatic iron pouring ladle at Waupaca Foundry.