PORTLAND, OR -- Williams Controls, a manufacturer of electronic throttle control systems for the heavy truck and off-road markets, has announced plans to outsource manufacturing operations currently done at its Portland, OR, facility as part of its ongoing efforts to focus on core product lines and improve global competitiveness.

The company plans to outsource all of its die casting and machining operations to suppliers primarily in Asia. The company will also relocate the assembly of its pneumatic products to the company's Suzhou, China, facility. These changes will eliminate approximately 52 hourly and five salary positions from Williams Controls' Portland headquarters over the next 18 months.

Die casting and machining operations are not a strategic part of Williams Controls' long-term business model, according to the company. The company's die casting and machining equipment is dated, and Williams Controls' customers are increasingly moving to plastic injection molded assemblies instead of die cast and machined components for their electronic throttle controls. By using high-quality suppliers for these functions, Williams Controls will be able to offer customers worldwide a more competitive product produced on state-of-the-art equipment, and avoid a significant investment in equipment that's no longer part of its core strategy. As a result, pneumatic assembly is being relocated to be closer to the company's new suppliers.

Costs to implement this realignment are estimated to be in the $3 million range and include asset write-downs, costs to move and refurbish tools, purchase new tools, inventory build costs, employee severance and other related costs.

Following the realignment, Williams Controls will still maintain a significant presence in Portland, retaining approximately 130 people in skilled manufacturing, engineering, finance and administrative positions. In addition, the company announced that it will invest in the development and production of new adjustable pedal systems and high technology non-contacting sensors at its Portland headquarters.

"These changes are critical for Williams Controls' future," said Patrick Cavanagh, president and chief executive officer of Williams Controls. "It's very difficult to let employees go, but in order to remain a viable competitor in our marketplace, we must structure our operations to enhance our offering to customers and improve our competitive position."

For more information about Williams Controls, visit: www.wmco.com .

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