In the midst of a $2.2 billion hostile takeover bid from rival ArvinMeritor, Dana Corporation on Thursday said it agreed to sell some axle production assets to Sypris Solutions, Reuters reported, adding that terms of the deal were not disclosed.
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According to the report, Dana said the assets, in its heavy-vehicle technologies and systems group, include a manufacturing facility in Morganton, North Carolina, and production assets from facilities in Toluca, Mexico, and Glasgow, Kentucky.
About 600 employees in Morganton and Toluca will be transferred to Sypris as part of the transaction, Dana said, according to Reuters.
Dana, which plans to enter into a long-term supply agreement with Sypris for the related axle components, said divesting the operations was part of its strategy to focus on core products and reduce fixed costs, Reuters added.
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