Dana Corporation (NYSE: DCN – news) announced today that it plans to close its structural products manufacturing facility in Reading, Pa.
The specific date of the closure will be determined following discussions with officials of the United Steelworkers of America, Local 3733, which represents many of the workers in the facility.
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The financial impact of the closure will be determined in part by the period of time the plant remains open and the outcome of discussions with the union. Currently, the closure is expected to result in a pre-tax charge ranging from $65 to $75 million, most of which will be charged to expense in the third quarter.
Mike Greene, president of Dana’s Structural Products Group, said the closure of the 75-year-old plant reflects the continuing evolution taking place in the automotive industry. “The closing of the Reading manufacturing plant is a direct result of changes in automotive supplier logistics requirements. Manufacturing efficiency now requires that our facilities be located closer to our customers’ operations,” he said. “Global competitiveness, coupled with the requirement to serve our customers’ evolving needs, led to the decision to close the facility.
“We will work to assist our people affected by the closure in finding other employment opportunities within Dana and in the local area,” Greene said. In addition, he said that the Structural Products Group plans to maintain its Global Support Services operations in the Greater Berks County area. These services encompass product engineering, advanced engineering, program management, and information technology operations.
Dana Corporation is one of the world’s largest suppliers to vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 320 major facilities in 32 countries and employs more than 82,000 people. The company reported sales of $13.2 billion in 1999. Dana’s Internet address is www.dana.com .
