Tower Automotive is to discontinue all stamping and ancillary processes currently performed at its Milwaukee Press Operations facility. The work will be relocated to other Tower Automotive plants or Tier II suppliers.
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The company expects to complete the transfer of work during the second quarter of 2002. However, Milwaukee will continue the assembly of frames for the Dodge Ram and Ford Ranger trucks.
About 400 salaried and hourly workers will be affected by the closure of the Milwaukee Press Operations.
The company said in a statement that there are anticipated cash closure costs of approximately $15 million and non-cash charges of $60 million (approximately $47 million of asset impairment charges and approximately $13 million relate to an increase in long-term employee benefit accruals).
Tower expects that the cash charges recorded will be recovered through operating savings within twelve months.
