TOLEDO, Ohio — Dana Corporation has announced four of eight facilities it plans to close during the next two years, including two Canadian facilities. Two Structural Solutions plants in Guelph and Thorold, Ont. are expected to close by Feb. 28 and June 30 respectively. The Guelph operation employs about 25 people manufacturing front and rear frame structures. The Thorold structures facility employs about 150 people manufacturing stampings.
The two US facilities announced for closure are Dana’s Syracuse, Ind., and Cape Girardeau, Mo. Traction Products plants. The Syracuse plant employs about 65 people and manufactures axle components. The facility is expected to close by Sept. 30. The Cape Girardeau plant employs approximately 200 people manufacturing axle components. The facility is expected to close by June 30, 2008.
The actions will consolidate production and are designed to balance capacity and take advantage of lower-cost manufacturing locations, the company said. Dana announced preliminary plans to close eight facilities last month.
Production from the Syracuse and Cape Girardeau facilities will be moved to Dana operations in Mexico. Closure of the Guelph plant coincides with the end of a customer program that comprised all production volume at the facility. The majority of the production at the Thorold operation will be moved to Dana’s Elizabethtown, Ky., structures plant.
“The decision to close any facility is extremely difficult and regrettable. But to become competitive and emerge from Chapter 11 as a viable company, it is absolutely critical that we further consolidate work across our facilities to reduce overcapacity and high operating costs,” said Dana chairman and CEO, Mike Burns.
Burns said that four additional facility closures are expected to be finalized in 2007. Dana expects to incur charges of approximately $26 million before tax during the fourth quarter of 2006 and additional aggregate charges of approximately $19 million in 2007-2009 for total charges of $45 million before tax, in connection with the plant closures announced today.
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News