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Harley-Davidson Closing Australia Casting Plant |
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Released on December 7, 2011
Motorcycle manufacturer Harley-Davidson Inc., Milwaukee, announced it will cease operations at New Castalloy, Adelaide, Australia, by mid-2013.
New Castalloy, which was acquired in 2006 and has a workforce of 212, currently produces cast motorcycle wheels and wheel hubs. The facility produces the majority of the cast wheels used on Harley-Davidson motorcycles. The company said in a press release it expects to begin sourcing those components through other existing suppliers.
According to the release, the decision to close the plant is part of an overall strategy Harley-Davidson embarked on in 2009 to restructure and consolidate operations. The company said it is now focusing its production operations on metal fabrication for motorcycle fuel tanks, fenders and frames, paint, final assembly and powertrain production.
“The company’s decision on wheel production follows a review of the long-term fit and competitiveness of the New Castalloy business with our strategy and was not made lightly,” said Matt Levatich, Harley-Davidson’s president and chief operating officer.
Harley-Davidson expects the transition of sourcing from New Castalloy to other suppliers to generate about $9 million in annual ongoing savings beginning in 2014. The company expects to incur about $30 million in restructuring charges related to the transition, including approximately $10 million in 2011 and $20 million in 2012.
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