According to local reports, Blackhawk Foundry & Machine Co. has a purchase agreement in place with an unnamed buyer and will sell certain assets and revenue. The transaction is expected to close within weeks, after which the Davenport, IA, green sand foundry will close its remaining operations, KWQC-TV reports.
Another source identifies the buyer of the assets as Citation Corp., a foundry group that has some operations and customers that are similar in scope to the Iowa plant.
The shutdown is expected before year’s end. Blackhawk Foundry points to a significant decline in demand for its cast products.
Blackhawk Foundry and Machine produces a wide range of engineered castings for components of various machines, diesel engines, conveyors, gearboxes, housings, hydraulic pumps, valves and valve bodies, and other products.
The Blackhawk Foundry organization dates to 1920, and it reached a peak employment of 255 just about one year ago. However, it has scaled back its operations due to falling demand, and it laid off nearly 100 workers earlier this year. The remaining 127 employees were notified of the sale plans this month.
Also, the organization recently arrived at an agreement with the U.S. Environmental Protection Agency concerning lead-contaminated soils at the ductile iron foundry in Davenport. Blackhawk Foundry agreed to excavate and properly dispose of lead contaminated soil, and then will construct a gravel cap over the excavated area, EPA reported.