Released on April 24, 2008

Citation Corp., Novi, Mich., sold the assets and equipment from its Butler, Ind., metalcasting facility to Diversified Machine Inc. (DMI) and by the end of July 2008 plans to idle the plant, of which it has retained ownership.

DMI will take on the work and equipment at its facility in Bristol, Ind., and a plant it recently purchased from Aluminum Casting and Engineering Co., Milwaukee, now operating as Diversified Machine Milwaukee.

Citation employs 138 workers at its Butler facility. It manufactures semi-permanent and permanent molded aluminum suspension and brake components for the automotive industry. The company said it anticipates gradually transitioning business and reducing its workforce starting in May. Citation also said its displaced employees would receive job counseling.

According to a press release issued by Citation, the transition is part of a strategy aimed at refocusing on core business.

 “Exiting permanent and semi-permanent molding allows us to focus on the growing sectors of our [metalcasting] business,” said Citation CEO Doug Grimm. “This strategic decision supports capital investments we’ve made in our ductile iron and diecasting businesses.”

Citation employs 2,700 associates in plants across Alabama, Texas, Indiana, Michigan, North Carolina and Wisconsin. The Butler division has been part of the company since 1996 when Citation acquired Bohn Aluminum Corp.

“Divesting a non-core business is a logical step…and will ensure Citation remains a strong and viable company,” said the company’s CEO Doug Grimm.