TROY, MI -- Intermet Corp. said it will close its Racine die-casting and machining plants, both of which are located in Sturtevant, Wis. The plants are expected to close during the second quarter of 2005.

The facilities currently employ 603 people, including hourly and salaried staff, and manufacture aluminum die castings for the automotive industry.

The company said continuing high costs at the facilities and a significant underutilization of current casting and machining capacity prompted the need for concessions, which were voted down by hourly employees represented by UAW Local 627 on Dec. 12.

Commenting on today's announcement, Intermet's Chairman and CEO Gary Ruff said, "Intermet's restructuring and turnaround plan called for significant changes in order to make the Sturtevant operations viable. Unfortunately, the final concessions offer we proposed to the union bargaining committee was not acceptable to the employees."

The company expects to record costs related to the closures of $13 million to $16 million during the fourth quarter of 2004, and expects to incur additional related costs during the wind-down period.

To learn more about Intermet, go to: www.intermet.com.

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