TROY, MI — Intermet Corp. announced late yesterday plans to close its ductile-iron foundry in Decatur, Ill. The company said it intends to meet with Local 6-728 of the Paper, Allied-Industrial, Chemical & Energy Workers International Union, which represents hourly employees at the plant, to discuss the closure. Local officials of the city of Decatur were notified yesterday of the company’s plans to close the plant.
The foundry, which currently has 320 active employees, manufactures ductile-iron cast components for a number of automakers and Tier 1 suppliers. If Intermet proceeds with its plans, the facility is expected to close by Dec. 31.
Commenting on the announcement, Gary Ruff, Intermet chairman and CEO, said, “While the Decatur Foundry has been important for our ductile-iron business in the past, exposure to legacy and other fixed costs at this location, coupled with Intermet’s capacity-optimization strategy relative to its plan of reorganization, requires us to consider this action. We believe that closure of the Decatur facility would allow Intermet to become more competitive as we emerge from Chapter 11, while preserving flexibility in our Ferrous Metals Group to ensure that future market demand can be met. If the foundry is closed, it is our intention to transfer its business to other Intermet ductile-iron foundries in Columbus, Ga., Hibbing, Minn., Lynchburg, Va. and Radford, Va.”
For more information about Intermet, go to: www.intermet.com.
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