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Metaldyne Closing Diecasting Operation

Nov. 10, 2008
Illinois automotive parts plant marked in streamlining effort

Metaldyne Corp. will close its aluminum diecasting operation in Niles, IL, by March 31, 2009, according to release. The plant, along with a machining operation in Middleville, MI, was made available for sale earlier this year.

The Niles plant produced aluminum diecastings for valve bodies, clutch housings, and stators, and also performed shot blasting and machining. The plant had been a supplier to domestic automakers, as well as to internal customers.

"After several months we were not able to find a buyer for the Niles plant and given the lower industry volumes we now need to accelerate the closure of the operation," stated Metaldyne chairman and CEO Thomas Amato. "This action is in line with our product and cost streamlining efforts."

Metaldyne, which is a subsidiary of Japanese auto parts supplier Asahi Tec, has been restructuring since January to improve cash flow and lower fixed costs, and specifically to “balance capacity with softer vehicle production in North America and create a more agile organization focused on core products.”

In this process, Metaldyne already announced closings for two plants supplying chassis components, in Farmington Hills, MI, Greenville, NC, and an administrative office in Plymouth, MI.