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Iron Foundry Closing, Rival Acquires Assets, Order Book

Oct. 3, 2016
Cast-Fab cites weak demand; Elyria Foundry gaining capacity, opportunity  Operating since 1907 97 workers unemployed A "detailed integration plan"
The deal between Cast-Fab Technologies and the Elyria

Cast-Fab Technologies, a gray and ductile iron foundry in Cincinnati, will cease operations in November, according to a WARN notice filed with the Ohio Department of Jobs and Family Services. The letter makes it clear the closing is permanent and will leave 97 workers unemployed.

“This decision comes after much consideration and a deep understanding of the direction our industry and marketplace are headed,” according to Ross Bushman, Cast-Fab president and CEO in a statement. Cast-Fab had produced a range of iron parts used in mining and oil-and-gas exploration, two industrial segments that have reduced their purchases significantly in recent years.

The Cincinnati foundry’s "customer base, intellectual property, operations and selective foundry equipment" will be transferred to Elyria Foundry Co. LLC, in Elyria, OH, according to the terms of a “joint venture” between Cast-Fab and the Elyria & Hodge Foundries organization. The terms of the joint venture remain undetailed.

"Both organizations are totally committed to a seamless transition so that our collective customers continue to receive the highest quality service and products without any supply interruption,” Bushman stated.

Cast-Fab Technologies has a significant machining and metal fabricating business as well as the foundry, and those separate operations are not affected by the foundry closure. The foundry has been operating since 1907, and formerly supported the Cincinnati Milacron machine tool business. It was acquired from Milacron in 1988.

Elyria Foundry is a gray and ductile iron foundry that produces parts ranging in size from 25 to 200,000 lb., for oil-and-gas equipment, wind energy projects, mining and mineral processing machinery, construction equipment, and similar applications. Along with its affiliate Hodge Foundry, in Greenville, PA, it is majority-owned by Wayzata Investment Partners LLC, a private-equity group.

“We have great respect for Cast-Fab and its leadership team and are excited about this partnership,” according to Elyria & Hodge CEO Rob Kukowski. “We have developed a detailed integration plan and will work together to execute the transition and ensure the consolidated customer base is well cared for …”

Kukowski emphasized that incorporating the Cast-Fab assets would make the Elyria & Hodge organization "the most diversified gray and ductile specialty foundry company in the U.S., with an annual capacity exceeding 35,000 tons."