CLEVELAND, OH — Hawk Corp. has initiated a new plan to focus on its two primary business segments — friction products and precision components, in an effort to improve the company’s global competitive cost position and support long-term growth initiatives in these segments.
As part of the repositioning plan the company intends to achieve cost savings at its friction products segment by moving operations at its Brook Park, Ohio, location to a new U.S. production facility. Hawk also said it plans to sell its motor segment and engage the services of an investment banker to advise the company as it reviews strategic alternatives relating to Hawk’s Tex Racing business unit.
“These moves will position Hawk to put our full force and effort into carrying out the long-term strategic initiatives of our friction products and precision components segments,” said Ronald Weinberg, Hawk’s chairman and CEO. “These businesses are each leaders in their field and will be the key to reinvigorated growth as the economy improves. Focusing our management and financial resources on our two business segments that have critical mass and stronger market positions will provide the greatest growth potential, which in turn, we believe will enable us to deliver significant value to Hawk shareholders.”
Hawk announced that its Wellman Products Group, a component of its friction products segment, has signed a formal, non-binding letter of intent agreeing to terms on the construction of a new 255,000-square-foot facility. In conjunction, Hawk will close its Brook Park operation, which employs approximately 200 people, upon completion of the new facility. The company expects to hire an equivalent number of employees as the production in the new facility ramps up.
For more information about Hawk, go to: www.hawkcorp.com.
Click here to view the rest of today’s headlines.