News Release

FOR IMMEDIATE RELEASE
February 25, 2007

Hess Industries...on the Move

BUSINESS UPDATE: Just as the global economy has continued to evolve, Hess Industries continues to evolve in order  to meet and capitalize on the challenges and opportunities as they emerge.

Hess Engineering, Inc. was incorporated in 1976 as a privately held company by Tony Hess. The company’s initial focus was on the design and manufacture of wheel & rim process lines for the automotive industry. Over the next 30 years, Hess Engineering evolved into Hess Industries, Inc., a multi-divisional engineering and manufacturing company comprised of Hess Engineering, Inc., Capitol Technologies, Inc. and X-cel Steel Fabrications, Inc. Core technologies focused on metal forming process technologies including roll forming, flow forming, spin forming, fabrication/ assembly, hydraulic presses, dies /smart dies, coiling /roll bending, shrinking/ expanding, straightening, welding and automation.

Innovation in these technologies resulted in the development and globalization of the Hess automotive wheel & rim and catalytic converter machines and process lines along with North American leadership in shaft straightening machines, sheet metal fabrication & assembly systems and press automation systems. Core markets grew from automotive to include HVAC, home appliance and other industries utilizing metal forming processes.

In the fall of 2005, Hess Industries, Inc. was purchased by Monomoy Capital Partners with the investment objective of advancing Hess’s global market position in core technologies and markets served.  

Recognizing that survival in this global economy demands innovation, organizational flexibility, focused energy and a competitive spirit that crosses all borders and all continents, Monomoy management initiated a business transformation process that is changing the Hess Industries’ competitive posture worldwide. Here is a brief look at some of these changes as the business transformation process continues.

Over the past 18 months, Hess Engineering, Inc. and Capitol Technologies, Inc. have been consolidated into a single focused business unit, Hess Industries, Inc., and relocated to the company’s Niles, Michigan campus. This has eliminated duplication of resources and enhanced our ability to focus on our core competencies. New investment in information technology has improved our ability to communicate within our global operations and with our global customers.

World class engineering, manufacturing and management talent has been recruited and incorporated into the organization, strengthening our ability to innovate manufacturing solutions that provide our customer’s with a competitive advantage. We are moving toward lean manufacturing and performance work team. In addition, we have enhanced our European sales, service and manufacturing office, expanded manufacturing capabilities in India and opened a new sales and service office in Shanghai, China.

Several years ago, we launched a new business unit called Formitt Metal Labs. Formitt is a product development, prototyping and production business that has opened new market opportunities for Hess spin forming technologies.  Through Formitt, we have expanded our spin forming market penetration into small engine, marine and filtration applications.

Our aggressive sales team has created a new opportunity for advancing our metal forming technologies. Recently Hess Industries was awarded one of the largest single orders in its history for a wheel and rim process line by a Brazilian customer. This process line will be almost 100 feet long and manufacture truck wheels. It will reflect the “state-of-the-art” in wheel and rim manufacturing technology and give Hess a competitive edge in the highly competitive worldwide automotive industry.

These are but some of the steps we are taking in order to strengthen our market position and advance as a world leader in metal forming process technologies. We invite you to go through our web site to learn more about our business model and core technologies and we look forward to helping your company gain competitive advantage through Hess metal forming process technologies.