Here's a Switch: Window Maker Leaving Phoenix, Expands Here

Orange County Business Journal, May 5-May 11, 2008 by Beighley, Dan

MANUFACTURING: Atrium adding about 30 workers to Anaheim vinyl window factory

Window maker Atrium Cos. is consolidating operations amid a slow-down in sales caused by the weak housing market.

That's not unusual.

But what is: The Dallas-based company is closing a Phoenix-area plant and bringing more work to its Anaheim factory.

Atrium expects to add 30 workers to the 100 already working at its 100,000-square-foot plant by September.

"We feel the California market is strong long term," said Peter Venerdi Jr., president of Atrium's Western region. "This is where we want to grow."

About 185 workers at its Tolleson plant outside Phoenix are being laid off as the company moves its vinyl and aluminum window manufacturing to Orange County.

With aluminum prices up 20% in the past year, business at Atrium's Tolleson plant making aluminum windows was tough, according to Venerdi.

At the same time, the higher aluminum prices helped boost sales of vinyl windows, which primarily are made in Anaheim, he said.

Atrium does about $800 million in annual sales and is one of the largest window makers in North America.

The company is majority owned by New York-based private equity firm Kenner & Co., which bought it from Atrium Corp. for $610 million in 2003.

Atrium has 7,000 employees in 23 states making windows and doors for homes and buildings. The company sells them to stores that cater to contractors.

Its Anaheim plant makes vinyl windows sold to dealers in California, Nevada, Arizona and New Mexico.

The company also owns Superior Engineered Products Corp., an Ontario-based window maker.

The housing slump and higher costs for aluminum and fuel have been a drag on the company, bringing revenue down about 10%, according to Venerdi.

In February, credit rating company Moody's Corp. downgraded Atrium to a negative outlook, saying slower sales and high debt put the company at risk of defaulting on bonds.

The key for Atrium is to cut costs, Venerdi said.

In the past three years, it's closed three plants, including the Phoenix-area factory.

Last year it closed its 80,000-square-foot Shelton, Conn., factory. In 2006, it closed its Danvid Window plant in Carrollton, Texas, and combined it with its Dallas facility.

Atrium's Arizona factory began slowing in July as it felt the effects of the downturns in the Phoenix and Las Vegas housing markets.

Four years ago, the Tolleson plant had $65 million in sales but was on track to do less than half that this year.

It's a different story in Anaheim.

Atrium added 30,000 square feet to the plant last year, bringing the total to 100,000 square feet.

It bought the Anaheim plant 10 years ago from Alcan Inc.

Atrium was founded 60 years ago and got its start selling windows primarily in the Southwest.

It has been growing mostly through acquisitions.

Last year it sold Miniature Die Casting to Advanced Global Technologies, then bought North Star Vinyl Windows and Doors, a Canadian company that makes vinyl windows and doors.

In 2004, it bought Florida's Robico Shutter Inc., Expert Installation Service Inc. and Kinco LP as well as West Coast Custom Finish Inc. of Nevada.

Atrium competes with Mitgard Windows Inc., part of Tacoma, Wash.-based Milgard Manufacturing Inc., International Window Corp., owned by Monterey Park-based International Aluminum Corp., Klamath Falls, Ore.-based Jeld-Wen Inc. and Valley Forge, Pa.-based CertainTeed Corp.