posted February 13, 2008
Manufacturers Industrial Group, LLC (MIG) has purchased Modern Industries, LLC from Leggett and Platt, Incorporated. Leggett and Platt, Incorporated indicated that the Chattanooga facility was to be closed during 2008 if a buyer could not be found.
MIG CEO Andre Gist said he was impressed with the support for the MIG purchase from local organizations.
“We relied on the Chattanooga Area Chamber to arrange meetings with local leaders and the mayors as we made our deliberations about whether to finalize the purchase of Modern Industries,” Mr. Gist said. “The clear and personal support Mayor Ron Littlefield and County Mayor Claude Ramsey conveyed for the success of this transaction was one of the factors that convinced us that this was a good investment for our company.”
“On behalf of the Chattanooga area community, I thank MIG for preserving 300 local jobs,” said Mayor Littlefield. “This was a closer call than any of us would have liked.”
County Mayor Ramsey said MIG is a good fit for the Chattanooga area. “MIG’s focus on manufacturing welded assemblies and fabricated metals for the automotive and construction industry will make them feel right at home in Hamilton County. We’ve already got a strong cluster of related industries, and I feel certain that our workforce and MIG’s successful business model will result in a win for both our newest employer and our community as a whole.”
MIG also anticipates strong growth potential in Chattanooga. “Our hope is to expand to this facility over the next 2-5 years.” said Mr. Gist. “Chattanooga is the fastest-growing metro area in Tennessee and we look forward to growing along with the city.”
“Modern Industries is an example of how focusing on business retention yields strong benefits for the local economy,” said Trevor Hamilton, the Chattanooga Chamber’s vice president of economic development. “Growth begins with maintaining and nurturing the companies you already have.”
Located in two facilities in Lookout Valley, Modern Industries currently makes wire frames and seat components for the automotive seating market. The company supplies products for a wide range of vehicles manufactured in North America.
MIG, which is headquartered in Lexington, Tn., is the largest business in Henderson County and the largest minority-owned business in Tennessee. The company is a contract manufacturer which specializes in robotic, resistance, projection, automatic, and hand welding. MIG's assembly processes include riveting, staking, swaging, and light press work.
The company was founded in 1998 with a five-year, $25 million annual contract with Johnson Controls ASG to supply welded and assembled automotive seating components to their Lexington and Linden, Tn., facilities.
By 2000, MIG had increased the size of the facility from 45,000 to 120,000 square feet. Sales were $38 million and employment at 400 people. In 2004, MIG formed a joint venture with Visteon Corporation to build cockpit modules for Nissan NA in Smyrna, Tn. The operation was located inside the Nissan facility. Annual combined sales for 2006 were over $400 million.
MIG will manufacture formed wire and tube at the Modern Industries plant.
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