German Company to Open First U.S. Manufacturing Plant in Brookfield

A German hydraulics engineering and supplies company plans to open its first U.S. manufacturing facility in Brookfield where it has a small sales office at 4465 N. 124th St.

Thomas Magnete USA LLC plans to add 27 new jobs by 2015 and invest $3 million after relocating to a 30,000-square-foot leased space. The new Brookfield location is still being negotiated.

Headquartered in Herdorf, Germany, Thomas Magnete GmbH provides engineering services and hydraulic equipment and supplies for the automotive, agricultural and construction industries. Ford Motor Co. presented Thomas Magnete with a Quality First award in June for a metering pump it supplies Ford.

Gov. Scott Walker joined representatives of the M7 regional economic development organization, City of Brookfield, Waukesha County and other business leaders in announcing the plans. The Wisconsin Economic Development Corp. will provide $79,000 in tax credits to assist the project.  

Thomas Magnete USA CEO Matt Alagna said the privately-held company, which has production operations in Europe and Asia, considered U.S. plant locations in Atlanta, Detroit, Toronto and Cincinnati before being persuaded southeastern Wisconsin was most ideal.

"We really felt Wisconsin was the best place to put our footprint," Alagna said. "The sound work ethic of the people, the higher education universities like MSOE and the University of Wisconsin — Madison, supply base... and also logistics."

Sixty precent of the company's manufactured products will come from suppliers within four hours of Brookfield, he said.

Thomas Magnete plans to increase both shop and office staff in coming years, he said.

"Having been a victim of two plant closings in Racine, being on this side of the fence and being able to bring jobs back to Wisconsin — my home state — is a wonderful thing," he added.

Walker said nearly 20 percent of the state's economy involves manufacturing, followed by agriculture — both markets Thomas Magnete will improve.

"Matt, we are excited about this, we are excited about Thomas Magnete being here," the governor said. "Not just in terms of adding jobs but when you talk about a North American headquarters... in Brookfield, Wisconsin. That is phenomenal."

Walker said the state's policies are working to attract new businesses, noting nearly 40,000 private sector jobs have been added this year toward his pledge to add 250,000.

Brookfield Mayor Steve Ponto praised the M7 and state officials for negotiating with the European company to select Brookfield and the Milwaukee region.

"These will be very desirable jobs," Ponto said in an interview. "I think everyone's excited about that."

Gale Klappa, co-chairman of the Milwaukee 7, said Thomas Magnete is the sixth European business the regional effort has lured to southeastern Wisconsin, including Sic Lazaro, Ingeteam, and Seda International Packaging Group.

"Europe will continue to be a key geographic target for us," he said. "In fact, as we speak we are working with several other European possibilities."

Mayor Ponto said the company's decision also will help strengthen the city's Sister City relationship in Germany, he said. Ponto said while he was aware the state and M7 were negotiating with a German company, he did not know its identity when Ponto , Germany in June. So he wasn't able to visit the company headquarters in Herdorf. Both cities are located near Frankfort.

"It's not going to be a huge number of jobs, but progress is progress," Ponto said. "These are going to be good family supporting jobs. It's nice to have some good news."