NOVI, MI — Tower Automotive will consolidate the operations of its Granite City, IL, and Milan, TN, facilities into other Tower facilities in North America in a move to further reduce excess manufacturing capacity, as well as operations and manufacturing costs. The company said the move would improve operational efficiency.
“Over the past several months, we have developed a strategy to improve Tower’s operational efficiency, cost competitiveness and ability to respond effectively to changing market forces,” said Bill Pumphrey, Tower Automotive’s president of North American operations. “These actions are an important and necessary part of that strategy, and we will continue to examine all aspects of our operations and make the necessary changes to help ensure Tower’s success now and in the future. Although these are difficult decisions, as they affect our hardworking colleagues, we must do what is right to strengthen Tower.”
Tower’s Granite City facility currently produces stampings, control arms and subassemblies for Ford, Nissan and General Motors; the Milan facility produces stampings and subassemblies for Nissan, Toyota and other Tower business units.
The company said that it would immediately begin a phased consolidation of these operations into several other Tower facilities in North America. Tower expects that the consolidation will be complete by the end of 2006, at which point production at both facilities will cease. Approximately 300 employees of Granite City and 290 employees of Milan will be affected by this action.
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