Released on May 9, 2008

Metaldyne LLC, Plymouth, Mich., has completed the closure of two of its U.S. metalcasting plants, moves it announced in early 2007, and released the destination of the discontinued production.

The company, acquired by Asahi Tec, Shizuoka, Japan, several years ago, announced the closure of its Farmington Hills, Mich., plant in May of last year, shortly after saying it would discontinue production at its Greenville, N.C., metalcasting facility by the end of the year. At the time of the announcement, the company was unsure where production from Farmington Hills would be transferred. It now says the work will go to its plant in New Castle, Ind. As announced last year, production from Greenville will be transferred to a nearby plant in Greensboro, N.C.

According to a company press release, the closures were intended to adjust for excess capacity caused by lower vehicle sales from Metaldyne’s North American customers.

“The economic dynamics in North America has created production softness for some time in the States, resulting in excess manufacturing capacity,” said Thomas Amato, Metaldyne chairman and CEO, and Asahi Tec co-CEO. “Although these are difficult actions, it is important that we gear our capacity for the production levels we anticipate this fiscal year and going forward.”

The company also closed a commercial office it leased in Plymouth. Employees at the office were relocated to Metaldyne’s operations office. All three of the closed facilities were part of the company’s North American Chassis Group, which principally makes suspension components

Metaldyne has reduced its U.S. manufacturing footprint from 23 plants to 14 plants over the past three years, focusing its efforts outside of North America. The company currently has 18 manufacturing plants in the Americas, 12 in Europe, and three in Asia. Metaldyne has annual revenues of approximately $1.8 billion. The company employs more than 6,500 at 33 facilities in 14 countries.