WRCA filed for voluntary bankruptcy protection in May 2002, with over $40m of debt. It began its recovery under court appointed chief restructuring officer (and subsequently CEO) Ira Glazer of Getzler & Co. KPS Special Situations bought the firm in June 2003, at a cost of $1.5m in equity and the assumption of $53m of WRCA debt. At the time, KPS planned to invest $16.5m to help the firm with its restructuring.
By mid-2005, KPS was able to recapitalise WRCA at $220m, and invested $100m in acquiring Mexico-based Aceros Camesa. Glazer commented, “WISCO WRCA is the logical next step in the development of our business as we strive to become the world’s leading wire rope provider. Following last year’s acquisition of Aceros Camesa, we believe it is a natural progression to manufacture in Asia and to supply China, the biggest market in the world.”
The new one million square foot facility, built close to WISCO’s steel production plant in Wuhan, will use more than 75 major pieces of manufacturing equipment, and be able to produce more than 50,000 tons of wire rope products, once completed. Construction of the plant is expected to be substantially completed in 2007, with some specialty installations continuing into the following year.
By 2010, planned expansion capabilities are hoped to bring total output up to over 100,000 tons. Total investment in the venture will be around $100m, and it will employ more than 400 people. It will manufacture products exclusively for China and Asia, and not for export into the North American market.
In separate news, WRCA has announced the appointment of Peter Lang as district sales manager of the Australian territory. Lang has extensive experience in the marketing of technical products as well as developing distributor networks in Australia, Asia and the United States. He graduated from the Sydney University of Technology with a diploma in Structural Engineering.
