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January
5, 2005
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Dana Corporation Announces Outsourcing of Grey Iron Castings
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Dana Corporation Announces Outsourcing of Grey Iron Castings
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Dana Corporation announced it has signed a long-term agreement with Federal-Mogul Corporation to supply Dana with grey iron castings from its western Michigan facility. Grey iron castings are used in the manufacture of piston rings. Consequently, Dana will close its Muskegon, Mich., foundry operations. Production is expected to end in the third quarter of 2005, eliminating approximately 240 jobs. This action will result in an after-tax charge of approximately $12 million, of which $11 million will be recorded in the fourth quarter of 2004. |
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“This decision was necessary due to the excess capacity for grey iron piston ring castings,” said Mike Laisure, president of Dana’s Automotive Systems Group. “Our foundry is severely underutilized and no longer a viable operation. This action will strengthen our overall competitiveness.
“Affected Dana employees will receive outplacement training and separation benefits. We will do everything possible to support our people in their search for new employment,” he added.
(Dec. 22, 2004)
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