Integrated Specialties President Resigns
The president of Integrated Specialties Co. in Fullerton abruptly resigned Wednesday, just 15 days after the firm’s sister division was sold by Allegheny International Inc., its Pittsburgh-based parent.
J.C. McGovern reportedly quit without notice Wednesday, leaving his office in late afternoon. McGovern had become president of the newly formed semiconductor products company after Arnold Engineering Co. was split up in the Feb. 12 sale. Arnold’s laminated steel products division, now called Arnold Technologies Inc., was purchased by Reliance Steel & Aluminum Co. of Los Angeles for more than $1 million in cash.
McGovern could not be reached for comment, but his resignation was confirmed by Robert Rosenast, the former president of Arnold Engineering who now is president of Arnold Technologies. Rosenast said McGovern’s resignation was unexpected and added that it was his understanding that McGovern had been offered another position elsewhere.
Before the split-up, McGovern was president of the Pacific Division at Arnold Engineering.
Rosenast said an acting president had been appointed at Integrated Specialties. Rosenast, who led Arnold Engineering’s two divisions for 10 years, said he believes the company “will be fine” despite the sudden departure. One of Allegheny’s reasons for selling the steel-laminating division, he said, was to provide capital for improvements at the semiconductor products division.
However, according to Greg Stetson, controller for Integrated Specialties, that division had not been profitable, whereas, Rosenast said, the Arnold division bought by Reliance had been making money for Allegheny, which did not report separate earnings for the divisions.
In a related matter, Rosenast said that none of Arnold’s 244 employees will lose their jobs because of the company’s split-up.
Rosenast said most of the Arnold employees will be retained by Arnold Technologies. All others, he said, will remain with Integrated Specialties, a producer of lead frames for the semiconductor industry.
Arnold Technologies will be moving to new offices elsewhere in Orange County within two months, Rosenast said. Integrated Specialties will remain in Fullerton as a subsidiary of Allegheny International.
Allegheny established Arnold Engineering 40 years ago as a two-product company.
The steel-laminating division was the only one of its kind on the West Coast, Rosenast said, adding that Reliance plans to increase Arnold Technologies’ line of laminated steel products to meet demands of a healthy market.
