Intermet Corp. plans to close its aluminum diecasting plant in Pulaski, TN, in the second half of this year, it announced. The Texas-based producer of cast-metal components for automotive, commercial vehicle, and industrial markets, cited overcapacity in its own organization and in the automotive parts segment for the decision. “The suppliers who will survive in this environment are those who, like us, recognize the need to align fixed costs with the new levels of demand and take the appropriate actions," according to Intermet president and CEO Jeff Mihalic.
The shutdown will be carried out in stages and will be complete in the second half of 2008. Intermet says 105 workers are affected.
The Pulaski plant melts up to 10,000 tons of aluminum annually, and produces components weighing up to 30 lb at 16 diecasting machines. It also has seven machining centers. Finished products include rocker arm covers, rack-and-pinion housing, electronic housings, and oil filter adapters.
"Actions such as these are never easy but regrettably they are ones we have to take to continue to ensure the highest levels of service and value to our customers," Mihalic stated. "We are continuing to evaluate every aspect of our business in order to become the premier, most diversified manufacturer of cast-metal components for the automotive, commercial-vehicle and industrial markets."
Intermet will transfer the production to its plants, in Jackson, TN, Minneapolis, and Palmyra, MO. "We are working closely with all of our customers to finalize plans for a methodical transition of work to other Intermet locations and an uninterrupted supply of product. We will also work closely with all Intermet employees affected by this closing to help them through this transition," Mihalic explained.
Intermet to Close Tennessee Diecasting Plant
Points to overcapacity in the company, and the industry