Dana names Canadian plants to be boarded up

TOLEDO, Ohio — Struggling vehicle components and parts supplier Dana Corp. has disclosed the locations of previously announced plant closures, including two in Canada.

Dana, which has been under bankruptcy protection since last March, will shutter four plants in total. They are:

A frame structure facility in Guelph, Ont., which will close Feb. 28, will eliminate 25 jobs; and a Thorold, Ont. plant, which makes metal stampings and frames for Ford trucks, is expected to close in June, leaving about 150 people out of work.

Two U.S. plants — in Syracuse, Ind. and Cape Girardeau, Mo. — are also part of the closures. Both plants make axle parts and employ a combined 270 people.

Just after filing for Chapter 11 earlier this year, the company announced it planned to shut down eight of 66 plants in Canada and the U.S. and move manufacturing capacity to lower cost countries such as Mexico. The additional closures of four other plants will be announced within the next two years, reports Canadian Press.

A Thorold machining plant, which employs about 180 people, could be included in that round of closures.

Closing all plants and reducing labor costs and benefits is expected to save between $405 million and $540 million each year, the company says.

Dana declared bankruptcy and announced a strict restructuring effort after its biggest customer Ford made a series of production cuts last year.

Several large first tier auto suppliers, including Delphi Corp., have suffered as a result of Big Three carmakers losing market share in recent years.

About three quarters of Dana’s sales are from automotive systems and component sales, while the rest from truck products.

— with files from Canadian Press


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