Metaldyne Continues Metalcasting Divestments
July 25, 2008
Released on July 22, 2008
Metaldyne Corp., Plymouth, Mich., announced it will seek to divest another of its metalcasting operations, putting its diecasting plant in Niles, Ill., up for sale, as well as a machine shop in Middleville, Mich.
The company, which was acquired by parent Asahi Tec, Shiuzuoka, Japan, several years ago, completed the sale of two other facilities, in Farmington Hills, Mich., and Greenville, N.C., in early May. According to a spokesperson for the company, the moves have been part of an effort to focus Metaldyne’s product offerings.
Under a program the company calls “Plan to Win,” Metaldyne has performed a product review and determined that the divesture of automotive suppliers, including metalcasters, will streamline its cost structure and improve overall company performance.
“We are taking a holistic view of the global marketplace and implementing strategic drivers given the dynamic environment,” said Thomas Amato, chairman and CEO of Metaldyne and co-CEO of Asahi Tec. “As we reviewed our products and operations and their opportunity for growth, we found that some products and operations are no longer core and better suited for other suppliers. We continue to review all our products and proactively take action if necessary.”
The Middleville and Niles operations will be discontinued by the second quarter of FY2008 but will be held by the company for sale or closure. Niles manufactures aluminum die castings, and Middleville principally machines front engine covers, oil pumps, and other components.
Metaldyne has annual revenues of approximately $1.8 billion. The company employs more than 6,300 employees at 33 facilities in 14 countries. Proceeds from any divestitures will be used to pay down debt or for general funding purposes.