Hayes Lemmerz International Inc. reports that it has sold its ductile iron foundry in Cadillac, MI, to a new company formed to acquire and operate the facility. Cadillac Castings, the name of the new operation, is backed by private investors. No purchase price was reported. Hayes Lemmerz produces automotive and commercial highway wheels, brakes, powertrain, suspension, structural, and other components. It announced in September it was studying options for selling or closing the wholly-owned subsidiary at Cadillac.
In November, Cadillac Castings gained approval from the Michigan Economic Development Commission for a Single Business Tax credit worth $2.7 million. The state legislature also amended the Michigan Economic Growth Authority regulations to ease the purchase process for the prospective owners.
The Cadillac foundry has been in operation since 1920. Its current output includes engine exhaust manifolds, steering knuckles, and other cast components. Cadillac Casting will continue supplying castings to certain Hayes Lemmerz machining facilities, and other customers.
"The sale reflects continued progress in Hayes Lemmerz' plan to increase the focus on core products in select geographic areas," stated Hayes Lemmerz president, CEO, and chairman Curtis Clawson. "We are proud of the efforts of the highly-capable employees in Cadillac, and we are confident that they will be a valuable addition to the buyer."