Citation to Transfer Production from Texas to Alabama

June 27, 2008
Re-balancing capacity between Lufkin and Brewton foundries

Citation Corp. will reduce capacity at its Lufkin, TX, ductile-iron foundry by the end of September, and will transfer some product lines from Lufkin to its Brewton, AL, foundry. Citation did not identify what the operating capacity of Lufkin or Brewton will be after the changes, which it explains “will match the capacity of new lower market demands and help the company meet financial objectives.”

Chief operating officer Cary Wood emphasized that “Lufkin remains one of Citation’s flagship facilities.” He said the plant will continue to serve its remaining customer base, including Mexico, and that that Citation “continues to explore new markets” that might be served by Lufkin’s available capacity.”

Both the Lufkin and Brewton foundries produce high-volume orders of “safety critical” ductile iron castings, in particular for automotive customers. Citation stated that the production transition will be carried out gradually, and workforce reduction will begin in August. About 128 hourly and salaried workers will be affected at Lufkin, out of a total workforce of 466.

“Balancing our foundry capacities allows us to eliminate process redundancies and optimize our manufacturing footprint,” stated Wood. “This strategic decision supports capital investments we’ve made at our Brewton plant and provides logistical advantages that enable us to better serve customers located in the southeastern region of the United States.”

Citation designs and manufactures aluminum, gray iron, and ductile iron cast, as well as high-pressure aluminum diecastings, for automotive, truck, and industrial markets, at 12 plants in Alabama, Indiana, Michigan, North Carolina, Texas, and Wisconsin. It also offers machining and assembly of components for various components.