The Arnold Engineering Company, as it exists today, traces its roots back to the late 1800’s when Bion J. Arnold, internationally famous electrical engineer, founded the Arnold Electric Power Station Company. Bion J. Arnold, the father of the late Robert M. Arnold, was a close friend of Charles Steinmetz and Thomas Edison. His company was composed of engineers and contractors who designed and built complete power, heat, and electric railway generating systems. Around 1898, the company patented the first magnetic clutch, "The Arnold Magnetic Clutch", which was used in electric power generating stations.
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Bion J. Arnold
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Arnold's First Building
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In the early part of 1905, Bion J. Arnold changed the company name to The Arnold Company. His staff of civil, mechanical, and electrical engineers continued in the electric power generating field. One of their projects at this time was to design and build the power generating stations and overhead construction for the E. & B. (Elgin & Belvidere) Electric Railroad. This interurban railroad, opened in 1907, later connected to Rockford, Illinois. Substantial payment for this project was in the form of securities in the E.B. & R.
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In 1924, Bion J. Arnold renamed and chartered his company, The Arnold Engineering Company. At this time, the E.B. & R. went into financial difficulties and Bion J. Arnold acquired the railroad. However, he kept his two companies distinctly apart.
With the advent of the automobile and of electric railroad transportation, the E.B. & R.’s business dropped and operations were discontinued in 1928. Bion’s son, Robert M. Arnold, previously at M.I.T., was then working at the Grigsby Grunow in Chicago.
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Robert M. Arnold
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Early Powder Core Products Manufacturing
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In 1934, Robert M. Arnold returned from England where he had done exploratory work on permanent magnetic materials for Philco, and started actively working for his father’s company. One of his first assignments was to develop permanent magnets for the Pettibone-Mulliken Company in Chicago. After one year of developmental work, Pettibone-Mulliken decided not to enter the magnetic field. And so, with assistance and permission from his father, Robert M. Arnold started his own permanent magnet production at the former E.B. & R. Railroad generating and repair depot located in Marengo, Illinois, the present site of the company’s largest plant. His production was Alnico permanent magnets and was licensed under a patent held by the General Electric Company. These first marketed products were used primarily in radio loudspeakers.
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In December of 1936, Robert M. Arnold bought the equipment of the auctioned Kinite Company, a foundry in Sheboygan Falls, and moved production from the Marengo plant. Initial manufacturing started in Sheboygan Falls with only five employees.
With the expansion of the electronic industry and its demand for magnetic materials, Robert M. Arnold, in 1940, moved the operation back to Marengo to be nearer the Chicago market.
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Early Alnico Manufacturing
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Powder Core Magnets
Wound Core Magnets
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During the early part of World War II, The Arnold Engineering Company manufactured parts for the Sherman and M-3 tanks. As the war progressed, Alnico magnets were also produced for one of the largest O.S.S. government contracts of its kind in the war. Proximity fuse magnet assemblies were manufactured for motor and anti-aircraft shells, in appropriate top clearance.
In 1946, Allegheny Ludlum Steel Corporation purchased all the stock of The Arnold Engineering Company. At that time in 1946, The Arnold Engineering Company became a wholly owned subsidiary operation. Robert M. Arnold continued as President of the company and in addition, became a Vice President and Director of Allegheny Ludlum.
Until 1948, the principal product was Cast Alnico permanent magnets. They ranged in size from large casting assemblies weighing over two tons to very small components weighing less than one gram, and are used in motors, magnetic ore separators, medical and home appliances, and in many electronic devices such as microphone components in N.A.S.A. communication equipment.
In 1948, a new product line was introduced. This line was called Mo-Permalloy powder cores and was originally manufactured under license agreement with the Western Electric Company. They are used primarily in electronic loading devices, electrical filters, and telephone equipment.
In the years following, Arnold Engineering produced several other magnetic lines. Tape wound cores became the third type of magnetic material. They were made from nickel alloy tapes and are used in transformers and electronic control devices. Bobbin cores followed and were available in a wide range of sizes to suit the ultimate use of the core in electronic computer assemblies.
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In 1951, transformer cores (Silectron), made of grain oriented silicon steel, were produced to become Arnold Engineering’s fifth magnetic line. They were supplied in sizes weighing a fraction of an ounce to over a ton.
In 1955, a line of iron powder cores was introduced. Their principal usage was in various radio, television, hearing aid, computer and aerospace applications.
In 1964, Arnold Engineering formally announced its ceramic magnet line called Hard Ferrites. These products are used primarily in such applications as magnetic separators, loudspeakers, holding devices, magnetic chucks, and D. C. motors.
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Ceramic Magnets
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Ogallala Electronics Plant
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In 1965, Arnold Engineering expanded its custom slitting and rolling of various precision and highly-alloyed metals. Metals as soft as copper can be rolled 50 times thinner than a human hair. Such ultra-thin metal foil is custom rolled for use in electronic, electrical and aerospace applications.
In 1967, The Arnold Engineering Company purchased Ogallala Electronics Manufacturing, Inc., Ogallala, Nebraska. O.E.M.I. manufactures large, high power coils and electromagnets. In 1971, O.E.M.I. was made the Ogallala Electronics Division of The Arnold Engineering Company.
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In June, 1970, to meet the rapidly expanding demand for ferrite magnets, ground was broken for Arnold’s new Ferrite Plant in Sevierville, Tennessee. The 65,000 square foot plant was completed and in operation in June, 1971.
In December, 1986, SPS Technologies, Jenkintown, Pennsylvania, purchased The Arnold Engineering Company from Allegheny International. SPS Technologies is a global company engaged in the design, manufacture and marketing of high strength aerospace and industrial fasteners, precision components, and specialty materials.
In March of 1990, Arnold Engineering announced the acquisition of the Hard Ferrite Slice/Dice business of D.M. Steward Manufacturing Company, Chattanooga, Tennessee. Most of that business was integrated into Arnold’s operations in Ogallala, Nebraska.
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Sevierville Plant
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In May, 1991, Arnold Engineering announced a strategic alliance with Pyroferric International regarding iron powder cores. Arnold transferred the production of the iron powder cores to Pyroferric and Arnold assumed marketing and sales responsibility for the majority of Pyroferric’s iron powder core production. As a result of this alliance, Pyroferric became the second largest manufacturer of iron powder cores in the United States.
Late in 1991, Arnold Engineering announced the consolidation of all of its Hard Ferrite permanent magnet production into its Sevierville, Tennessee plant. Associated with this consolidation was a significant capital investment in the Sevierville Plant for additional sintering capacity and advanced grinding equipment.
In May of 1992, Arnold Engineering announced the receipt of a U.S. Patent covering the unique passivation technology related to Neodymium-Iron-Boron powder and magnets. The technology was a result of an ongoing basic research and development program initiated by Arnold and SPS Technologies in 1989. The new process (Aquanide®) significantly enhances the corrosion resistance of NdFeB powder and magnets.
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Plastiform Plant
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In December, 1992, Arnold Engineering acquired all of the assets of Minnesota Mining and Manufacturing Company’s (3M) bonded magnet business in Norfolk, Nebraska. Sales of bonded ferrite and rare earth magnets are primarily to the automotive, business equipment and medical industries. About one-quarter of Norfolk’s sales are to export customers. The Norfolk facility consisted of an 84,000 square foot plant on a 175-acre site with a workforce of approximately 65 employees. Manufacturing processes include the production of ferrite powder, compounding, flexible magnet processing, injection molding, coating, magnetizing, laminating and tool making.
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In January, 1993, Arnold Engineering formed a 50-50 partnership with National Magnetics Corporation in Adelanto, California, to produce soft magnetic wound core products in a wide range of industrial, commercial and military electrical and electronic equipment. The joint venture company was named National-Arnold Magnetics Company, and is located in Adelanto, California, in a new 40,000 square foot plant. All of its wound core products are sold by Arnold Engineering Company's marketing and sales organization.
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National-Arnold Magnetics
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Flexmag Industries Inc.
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In June, 1996, Arnold Engineering purchased Flexmag Industries, Inc., a manufacturer of flexible bonded magnets, from Dynacast Inc. along with the assets and business of Dynacast’s injection molded magnets business.
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In July of 1996, Arnold Engineering acquired Swift Levick Magnets Ltd. Of Derbyshire, England from Outokumpu Oy. Swift Levick is a major European manufacturer of Cast Alnico and Samarium Cobalt permanent magnets. This acquisition provided the opportunity for Arnold to consolidate its Samarium Cobalt production and to expand into European markets.
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Swift-Levick Magnets Ltd.
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In March, 1997, Arnold announced the acquisition of RJF International’s bonded magnet business located in Cincinnati, Ohio. The business was subsequently merged into Flexmag Industries facility in Marietta, positioning Flexmag as the largest manufacturer of flexible bonded magnets in North America.
During 1997, Arnold announced and implemented two major facility expansions. Flexmag’s facility in Marietta, Ohio was expanded by 45,000 ft.2 to accommodate the addition of the RJF business and assure Flexmag’s ability to serve future increases in customer requirements. A 30,000 ft.2 addition was completed at Arnold’s Plastiform Division in Norfolk, Nebraska to increase capacity to manufacture injection molded magnets, primarily sold for automotive applications.
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Magnetic Technologies in Rochester, NY
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In December, 1997, Arnold announced the acquisition of Magnetic Technologies Corporation, headquartered in Rochester, New York. Magnetic Technologies is a custom manufacturer of precision magnetic rolls and magnetic sub assemblies for the reprographics industry. Magnetic Technologies also has operations in the U.K., Magnetic Technologies Europe, LTD. Magnetic Technologies developed the first magnetic brush for Xerox in 1972 and Xerox has been MTC’s largest customer since 1975. MTC has established a leadership position in its market segment with advanced technology and world-class quality and service.
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In January, 1998, Arnold acquired the wound solenoid business of Premier Microwave. The business was consolidated into Ogallala Electronics in Ogallala, Nebraska establishing Ogallala Electronics as the leading manufacturer of foil wound solenoids in North America.
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In September, 1998, Arnold announced the formation of Jade Magnetics, Ltd., a joint venture company with manufacturing operations in Shenzhen, PRC. Jade Magnetics is owned 60% by Arnold and 40% by Green Cartridge Company, Ltd. Jade’s business scope includes the production of specialized magnetic assemblies and bonded magnets for automotive and reprographic applications. Jade represents Arnold's initial manufacturing operations in the Asia-Pacific region.
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Jade Magnetics, Ltd.
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On August 16, 2000, Arnold acquired full ownership of National-Arnold Magnetics, Adelanto, California. The wound core business was sold to Magnetic Metals in February 2003.
In 2001, Arnold acquired full ownership of Jade Magnetics Ltd. Founded in June of 1998 in Shenzhen, China, a city of four million located just across the border from the Northern Territories of Hong Kong. Since its inception, the company has grown from three employees and a single product to more than 45 employees and a range of products spanning sourced magnetic materials to complex high precision assemblies.
The Sevierville, Tennessee Ferrite manufacturing plant was closed in October 2001 as a result of low cost product being imported from China and Korea. This was the third US ferrite manufacturing company to close (another closed in 2002). Arnold's strategy became one of buy/resell, developing relationships with higher quality Asian manufacturers.
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Building 1 and Building 2
Arnold Magnetics Ltd.
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In August 2002, Arnold Magnetics Ltd. started operation in a purpose-built facility for the manufacture of soft magnetic Powder Cores. The factory complex is located in Fuyong, a suburb of Shenzhen, China, within an hour's travel of Hong Kong. Over 100,000 square feet of modern factory, laboratory and office space and a highly trained workforce of over 175 produces the world's highest quality MPP, Super-MSS and Hi-Flux powder cores for delivery throughout the world.
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In January 2003, Arnold's parent company, SPS Technologies, celebrated its 100th Anniversary. As a publically traded company and to honor this event corporate leaders rang the closing bell at the NYSE on January 28, 2003.
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SPS Technologies at NYSE Closing Bell
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In March 2003, Gordon H. McNeil was appointed President of the SPS Magnetic Products Group and Arnold's headquarters was relocated from Marengo, Illionois to the Magnetic Technologies Corp. location in Rochester, New York.
On August 18, 2003, it was announced that Precision Cast Parts Corporation (NYSE:PCP) had acquired SPS Technologies.
In September 2003, Magnetic Technologies Europe Ltd. (MTE) was integrated into the factories at Swift Levick Magnets Ltd. near Sheffield, UK. A completely modernized area was specifically designed to house the advanced assembly operations that are the core of the Magnetic Technologies business. The combination of MTE's and Swift Levick's magnetics and measurement laboratories have created a superlative support organization to meet both internal and customer needs.
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As a result of the acquisition of SPS Technologies by Precision Castparts Corporation in 2003, the Magnetics Group was offered for sale. Arnold was purchased by a private equity firm (Audax Group) and management in January, 2005.
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In September, 2005, Arnold's Magnetics Technology Center was relocated fromMarengo, Illinois to the headquarters in Rochester, New York. The "Tech Center" is comprised of four areas: Materials Processing, Optical Microscopy, Measurements Lab, and a Library.
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Precision Assemblies & Bonded Magnets Groups
One of two Arnold factories in China
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In mid 2005, Arnold acquired total ownership of Jade Magnetics Ltd and integrated it into the Arnold Magnetics Ltd organization. The assembly operations were relocated to a modern factory and the business was renamed the Precision Assembly Group.
This same factory complex became home to the Bonded Magnet Group when Arnold's injection molding operations were relocated there starting in 2005 and completed in 2006.
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On February 20, 2007, Arnold Magnetic Technologies completed the acquisition of the Precision Magnetics Group (PM Group) of companies in Europe and the United States from Archibald Cox, Jr. The PM Group companies have operations in Sheffield, England; Lupfig, Switzerland; and Wayne, New Jersey (relocated to Rochester, NY in October 2007). In addition, Precision Magnetics AG of Lupfig, Switzerland is a Joint Venture partner with GQD of Ganzhou, China which produces Samarium Cobalt raw materials. The PM Group Companies manufacture a wide variety of Samarium Cobalt materials and precision assemblies for Aerospace and Military applications.
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Precision Magnetics, Switzerland Factory
Precision Magnetics Ltd, Sheffield, UK
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