TROY, MI — Intermet Corp. intends to close its foundry in Havana, Ill., during the second quarter of this year. The company said the closure is necessary to rationalize excess production capacity and reduce costs. The company will consolidate the plant’s equipment and products into other existing Intermet foundries.
The facility, which manufactures ductile-iron castings for the automotive industry, currently employs 205 people, including hourly and salaried staff.
“This has been a difficult but necessary decision for the company and we regret the effect it will have on our employees, their families and the Havana community,” said Gary Ruff, president and CEO of Intermet. “Based on studies conducted on the Havana plant and other Intermet foundries during the past year, we determined at the end of 2003 that this was the most effective course of action to better align our available capacity with the market, and make our overall ferrous-foundry cost structure more competitive.”
The Havana Foundry had sales of $26 million in 2003. Intermet said it expects to retain all of the foundry’s revenue. Intermet expects to record a pre-tax charge of approximately $8.5 million to $10 million in the fourth quarter of 2003 in connection with this closure. The charge is substantially non-cash.
For more information on Intermet, go to: www.intermet.com.
_______________________________________
Click here to view the rest of today’s headlines.
