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Two Metaldyne Plants Up for Sale, or Closure

July 22, 2008
Illinois diecasting plant, Michigan machining facility listed as discontinued operations

Metaldyne Corp. is offering two operations for sale, or else will close them, as part of its “action-oriented plan to create value” for shareholders, according to a release. The plants are in Niles, IL, and Middleville, MI. They will be listed as discontinued operations in the group’s upcoming 2Q 2008 financial statement.

The company said proceeds from the sales would be used to pay down debt or for general funds, but it did not establish any revenue goals or timetable for the closings.

"We are taking a holistic view of the global marketplace and implementing strategic drivers given the dynamic environment," stated Metaldyne chairman and CEO Thomas A. Amato. Metaldyne designs and manufactures metal-based components, assemblies, and modules for powertrain and chassis applications including engine, transmission/transfer case, wheel end and suspension, axle and driveline, and noise and vibration control products. The company is also a wholly owned subsidiary of Asahi Tec Corp., of which Amato is co-chairman.

"As we reviewed our products and operations and their opportunity for growth we found that some products and operations are no longer core and better suited for other suppliers,” Amato continued. “We continue to review all our products and proactively take action if necessary."

The Niles, IL, plant is an aluminum diecasting operation; the Middleville, MI, plant machines front engine covers, oil pumps, and other components.

Metaldyne explained that since January it has completed a comprehensive product review as part of its corporate-wide “Plan to Win.” It reports that the Plan “has streamlined its cost structure, focused its capital expenditures, and intensified its product line focus, all to improve performance.”

The Plan seeks to reduce structural costs, balance capacity in relation to North American vehicle production, and create “a more agile organization focused on core products.” Three chassis plants in Michigan and North Carolina and an administrative office in Plymouth, MI, have already been marked for closing.

"The Plan to Win will intensify our capital investing focus and bring more global balance to our manufacturing footprint," Amato stated. "We are committed to investing in core technology to strategically grow our business."