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Navistar to close foundry, source engine blocks and heads from suppliers

INDIANAPOLIS, Ind. — Navistar International announced it will be closing its foundry operations in Indianapolis, Ind.

The foundry produces engine blocks and heads for International engines. Navistar has chosen to instead source these components from suppliers, beginning in the first half of 2015.

The foundry will cease operations by the summer.

“Over the last two years, we’ve taken a number of steps to strengthen our business and position the company for a return to profitability and long-term success,” said Persio Lisboa, Navistar’s president of operations. “We’ve determined that leveraging our suppliers for these components will reduce our engine costs, improve our overall manufacturing capacity utilization, and free up additional resources to invest in our core North America truck and parts business.”

The closure will eliminate about 180 jobs and reduce Navistar’s operational costs by about $13 million per year.

“Closing a facility is a difficult decision because of its impact on the many great people who’ve been part of our company,” Lisboa said. “We will treat people with dignity and respect throughout this process.”

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