Dana Corporation is ‘outsourcing’ the supply of grey iron castings to a Federal- Mogul Corporation western Michigan facility. The castings are used to make piston rings.
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Consequently, Dana will close its Muskegon, Michigan, foundry operations in the third quarter of 2005, eliminating approximately 240 jobs. This will result in an after-tax charge of approximately $12 million, of which $11 million will be recorded in the fourth quarter of 2004.
“This decision was necessary due to the excess capacity for grey iron piston ring castings,” said Mike Laisure, president of Dana’s Automotive Systems Group. “Our foundry is severely underutilised and no longer a viable operation. This action will strengthen our overall competitiveness.
“Affected Dana employees will receive outplacement training and separation benefits. We will do everything possible to support our people in their search for new employment,” he added.
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