TROY, MI — Intermet Corp., a manufacturer of cast-metal automotive components, has announced plans to reorganize its manufacturing operations into five distinct business groups. The new plan, which is effective immediately, is designed to improve overall manufacturing efficiency and reduce costs, the company said.
The company has secured a replacement $75-million revolving credit facility to help support its plan to sustain and grow its industry position. The new facility, which will replace the existing revolving facility and provide the company with as much as $35 million in additional liquidity over the term of the new facility.
“We certainly appreciate the support shown by Goldman Sachs and Caspian Capital,” said Interim CEO Gil West. “We believe their efforts to assemble this new financing package demonstrate their belief in our company.”
Intermet’s new organizational structure allows for increased autonomy at the company’s casting plants, giving each facility greater financial and operational control of its business, improving overall responsiveness to customers and reducing overhead. As a result of these actions, the company’s corporate staff is being reduced and critical functions have been transferred to the new business groups. Overall, the company believes the plan will produce ongoing cost savings.
Commenting on the company’s reorganization, West said, “In this especially competitive industry environment, the company must be able to operate more efficiently while still maintaining high levels of customer service and product quality. After a thorough review of our business, we have developed a streamlined organizational structure that will enable INTERMET to better focus on profitability and exercise the flexibility necessary in a rapidly changing automotive industry.”
The five business groups in the plan, will each be managed by group presidents. They include the Domestic Ferrous Group, the Die Casting Group, the Monroe City Group, the PCPC Group and the Europe Group.
To further simplify the company and allow its sales function to more effectively interact with both the plants and its customers, Intermet’s customer account contacts now will be embedded directly in their respective business groups. Engineering and design activities also will operate predominately at the plant level providing further enhanced customer responsiveness.
For more information about Intermet, go to: www.intermet.com .
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