Metalcasting group Citation Corp. reports it is implementing a corporate restructuring program immediately, to increase its focus on emerging markets and to “right-size capacity to meet customer demand.” The group is being reorganized into two business units, Industrial products and Transportation products, and its ductile-iron foundry in Lufkin, TX, has been marked for closure.
The plant will be closed by March 2009, though the company’s statement allowed a possible of selling the plant.
In August, Citation announced it would close its Butler, IN, aluminum foundry and downsize the Lufkin plant. Since then, some of the plant’s production has been transferred to the Citation foundry in Brewton, AL. That transfer will be completed in October.
“After further assessment and the continued lower production demand, we have made the difficult decision to close our Lufkin facility,” stated Citation chief operating officer Cary Wood. “The closing ensures Citation remains a viable and competitive player in the castings industry and positions us for future growth in the transportation market and other growing sectors of our business.”
In addition to the other moves, Citation is planning to reduce its corporate salaried workforce by 18%.
“The purpose of the reorganization is to align our manufacturing plants with the key markets they serve to drive focus and capitalize on synergies,” stated Citation CEO Doug Grimm. “We continue to see growth prospects in global infrastructure such as rail, wind energy, agriculture and construction where Citation is uniquely positioned with the right mix of manufacturing assets and experienced people.”