Metaldyne Looking Into Plant Divestiture

As part of the strategic focus developed under its program, Metaldyne Corporation, an Asahi Tec company, anounced it will seek to divest its Middleville, Mich., and Niles, Ill., facilities.
The decision is the result of a comprehensive product review.
“We are taking a holistic view of the global marketplace and implementing strategic drivers given the dynamic environment,” said Thomas A. 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 reported under Discontinued Operations in Metaldyne’s financial statement beginning with the second quarter of the 2008 fiscal year, and will be held for sale or closure.
Middleville principally machines front engine covers, oil pumps, and other components, and Niles is an aluminum die casting operation.
Since January Metaldyne has taken significant steps to reduce its structural costs, balance capacity with softer vehicle production in North America and create a more agile organization focused on core products.
According to the company, proceeds from any divestitures will be used to pay down debt or for general funding purposes.