Friction Holdings to Cease Operations in Early 09 - aftermarketNews

Friction Holdings to Cease Operations in Early 09

During 2008, Friction Holdings pursued a strategic sale for the business, but was unable to find any interested parties.

CRAWFORDSVILLE, Ind. — Friction Holdings said it intends to cease all operations on or about Feb. 28, 2009. The company, which manufactures original equipment automatic transmission (transfer case) and wet-wheel brake components for automobile, heavy duty truck, farm machinery, mining, truck, bus, off-road, and military vehicles, has operations in Crawfordsville, Ind. and Greenwood, Miss. The planned action will affect 461 employees in Crawfordsville and 171 in Greenwood.

During 2008, Friction Holdings pursued a strategic sale for the business, but was unable to find any interested parties.

“Over the last year, we have experienced significant improvements in operating performance that all Friction Holdings employees should be proud of. Unfortunately, these improvements have not been adequate to offset the impact of the loss of a significant portion of our customer base and our efforts to develop a plan to adequately reduce the cost structure of the business or locate a strategic buyer have not been successful,” said Daniel Gaston, president and CEO, Friction Holdings. “We deeply regret the impact this difficult decision may have on the Crawfordsville and Greenwood workforces, their families and communities. As always, we are committed to treating all employees with respect and fairness and we will work to make this transition as smooth as possible."

Friction Holdings has given a 60-day notice to affected employees, appropriate officials and government agencies under the U.S. Department of Labor’s Worker Adjustment and Retraining Notification (WARN) Act. The company will honor its contractual requirements covered by the bargaining agreement and will be working with state and local service agencies to provide training and other support for affected employees.

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