Hendrickson to take control of Dana’s Canadian axle plant (Update)

NEW YORK — Struggling auto supplier Dana Corp. has been authorized to
sell its trailer axle business to Hendrickson USA.

The United States Bankruptcy Court for the Southern District of New York
made the ruling yesterday for Dana, which filed for Chapter 11 in March
and has since been operating under a strict restructuring plan.

The two companies first announced the $38 million deal in September,
which includes Dana’s heavy duty manufacturing facilities in Barrie,
Ont., Lugoff, S.C., and and Wuxi, China, among others.

Hendrickson will assume control of the main Lugoff, S.C. trailer
products manufacturing facility in January 2007 following closing
procedures outlined in the asset purchase agreement.

Products will be manufactured in Barrie, Ont. during the first quarter.

Distribution of loose trailer axles will be conducted from Lugoff,
Brampton, Ont. and Monterrey, Mexico.

“Hendrickson views the addition of the Dana trailer axle business as an
integral part of our long-term strategic plans. The acquisition of this
business extends our platform for common wheel ends and braking systems
across integrated and non-integrated families of suspension systems,”
said Gary Gerstenslager, President and Chief Operating Officer of

Added Perry Bahr, general manager of Hendrickson Trailer Suspension
Systems: “Hendrickson has a strong historical relationship with our
customers in Canada. We recognize the importance of the axle business to
our Canadian customers and will address the distribution of the trailer
axle products early on in our integration process.”

Both companies have reacted to a slowdown in the North American auto
sector with a series of production shutdowns. Dana will shutter a frame
structure facility in Guelph, Ont.; and a Thorold, Ont. plant, which
makes metal stampings and frames for Ford trucks.

Hendrickson recently announced it would initiate layoffs at its Stratford, Ont.
springs facility. The company expects about a 35 percent reduction, but it could be less depending on market conditions.

NOTE: In a previous story this week we mistakenly stated Hendrickson’s Stratford plant would be closing, rather than issuing layoffs. We regret the error.

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