June 29, 2006 -- Tower Automotive will cease operations at its aluminum foundry in Toronto by the end of August, according to Canadian press reports. The company, which is in the midst of a bankruptcy reorganization, made the announcement by way of a U.S. Securities and Exchange Commission filing. Closing the plant is part of Tower’s restructuring effort, to improve efficiency and lower costs, while focusing on its core products.
Tower Automotive filed for Chapter 11 bankruptcy in February 2005. Based in Novi, MI, and with 60 operations in the Americas, Europe, and Asia, the company manufacturers automotive body structures, lower vehicle structures, and suspension components and modules, for most of the world’s large automakers.
In the filing, Tower Automotive executives estimated that closing the Toronto foundry would cost about $19.9 million, including asset impairment charges of $14.5 million and employee costs of $4.3 million, in addition to other costs.
The foundry was acquired by Tower in 2000 through its takeover of Algoods Inc., a producer of aluminum heat shields and impact discs.