German Firm Acquiring A. Finkl & Sons

Chicago’s A. Finkl & Sons Co., a specialty steel forging company, has signed an agreement to be acquired by SCHMOLZ+BICKENBACH AG, a German producer of high-grade steels. Schmolz is headquartered in Dusseldorf, Germany.

With the acquisition of Finkl, Schmolz+Bickenbach will become the world’s largest tool steel producer.

A key benefit of a new facility will be the ability to greatly expand the size of Finkl’s facilities, currently about 200,000 square feet under roof.

One plan under consideration is to relocate Finkl to another location in the city. The plant being considered has 500,000 square feet of vacant manufacturing space. Finkl acquired the 44-acre site last June.

Another option under consideration for Finkl is to move to a 46-acre site in Sorel-Tracy, Quebec, adjacent to a steel plant that Finkl purchased in 2004, Sorel Forge.

The Canadian site, which Finkl has under contract, formerly housed a Slater Steel plant.

"The decision on where to relocate will be made in consultation with existing management and the new owners, said Joe Curci, president of Finkl.

The new facility will more than double the company’s manufacturing capacity, which is required to support its existing product lines and allow for expansion into new markets and the global marketplace.

The acquisition is expected to close in early 2007, with construction of a new integrated steel works commencing shortly thereafter once the site selection is finalized.