Tulsa World: Tough economy tests metal firm's mettle

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Tough economy tests metal firm's mettle

Cody Henson, a line operator at Champagne Metals, works on a newly installed machine last week at the aluminum processing company in Glenpool. Stephen Pingry/Tulsa World

By KYLE ARNOLD World Staff Writer
Published: 9/17/2009 2:20 AM
Last Modified: 9/17/2009 4:13 AM

Opportunity knocked at just the right time for Champagne Metals LLC, and now the Glenpool company is hoping a big investment will help carry it through tough times.

The aluminum processor finished an expansion last month worth between $7 million and $10 million that added about 30,000 square feet of space and brought in a new multimillion-dollar piece of equipment.

"If we didn't have this going on, we'd just be sitting and waiting for something to happen," said president and CEO Michael Champagne.

Champagne Metals did all of this while watching revenue drop 30 percent and reducing its work force from 60 members to 40 during the past year.

"We had to do something," Champagne said.

The 13-year old company processes sheet aluminum, straightening and cutting coils of smooth aluminum into usable sheets. Its biggest customers are manufacturers of horse trailers and pleasure boats.

Aluminum processing can be more difficult than working with steel because the sheets have to come out without scratches and perfectly straight. Aluminum is also a pricey venture because the material usually costs about 10 times as much as steel, and small blemishes can ruin an entire project.

Like most manufacturers, Champagne Metals started seeing declines in orders and customers in the summer of 2008. Having completed a $3 million expansion earlier that year by adding a leveling and cutting machine, the company was hurting for business just when it needed higher revenue the most.

Then in August 2008, Callery, Pa.-based equipment manufacturer Herr-Voss Stamco offered a major discount on new machinery. Champagne promptly started plotting an expansion that would entirely change its capabilities.

Upgrading from machines that could handle 75-inch-wide coils of aluminum, Champagne, Herr-Voss and customers started designing a new machine that could unspool, straighten and cut pieces of aluminum as wide as 100 inches.

"We saved $3 million on this by taking advantage of the downturn," Champagne said.

The new machine — about 270 feet long — gives the company capabilities to make seamless pieces for railcars, tankers and other large equipment. It also can be used for military contracting in areas such as ship manufacturing.

"This is a game-changer for us," Champagne said.

The new machine is matched by only a few others in the country, he said, mostly on the coasts or in manufacturing centers in the Northeast.

So far, the interest from potential customers has paid off, Champagne said.

By the end of 2009, sales are expected to return to pre-recession levels. The company also has diversified its customer base, he said, so that when the economy does recover, Champagne Metals will be ready for even more business.

Champagne Metals LLC

429 W. 158th St., Glenpool
CEO: Michael Champagne
Founded: 1996
Employees: 40

Kyle Arnold 581-8380
kyle.arnold@tulsaworld.com By KYLE ARNOLD World Staff Writer

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Some reader comments for this story were copied from "Champagne Metals upgrades plant despite recession," which was published on 9/16/2009.

	Report Comment Popeye, T-Town (9/16/2009 8:33:24 PM) Good for you Michael! The very best of luck to you and your company!!
	Report Comment Bball Fan, (9/16/2009 10:26:18 PM) Way to go, Mike. Always proud when I drive by Champagne Metals!
	Report Comment Glen R. Graham, Tulsa (9/17/2009 9:28:45 AM) Some positive news about a successful company, way to go Tulsa World, good job Michael Champagne and Champange Metals. Smart businesses can succeed even during a recession.
	Report Comment Mar, Tulsa (9/17/2009 10:15:57 AM) Succeeds due to smart management. Good job!
	Report Comment tulsaGuy, (9/17/2009 9:49:22 PM) Do they serve Champagne at company parties?

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