Citing changes in market conditions and production technology, as well as a substantial investment necessary for continued operation, Intermet Corporation announced on Thursday that it intends to close its foundry in Radford, Virginia, before the end of this year, with a target date of September 30.
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The facility currently employs 374 people, including hourly and salaried staff, and manufactures grey-iron and ductile-iron castings for the automotive industry. The New River Foundry, located next door to the Radford foundry, is not affected by this decision.
A spokesman said that, for the first four months of this year, the plant has recorded a pre-tax loss of $1.0 million.
The Radford foundry has seen a steady erosion of sales over the past several years due to a decline in demand for cast-metal automotive components using the shell-moulding process. As a result, the plant is currently operating at less than 50% capacity.
The company said the costs necessary to modernise the plant, including substantial investments in new pollution-control technology, would have further negatively impacted operating results at the plant.
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