Dana to Close Muskegon Foundry

Dec. 22, 2004
Long-term supply agreement with Federal-Mogul for piston rings

Dana Corp. has agreed to source its gray iron castings for piston-ring manufacturing from Federal- Mogul Corp. through a new long-term agreement. The decision will lead to closing Dana’s foundry operation in Muskegon, MI, by the end of the third-quarter of 2005, and the elimination of 240 positions.

The employees affected by the closing will be offered outplacement training and separation benefits.

"This decision was necessary due to the excess capacity for gray iron piston-ring castings," said Mike Laisure, president of Dana's Automotive Systems Group. "Our foundry is severely underutilized and no longer a viable operation. This action will strengthen our overall competitiveness.

Earlier this week, Dana announced it will be consolidating its off-highway transmission and axle manufacturing operations. That decision will result in closing Dana’s Statesville, NC, plant; a downsizing of a Belgian plant; and realignment of machining and assembly operations in North America and Europe.