Released on August 14, 2008

Citation Corp., Novi, Mich., intends to reduce its reliance on the automotive market, according to company CEO Doug Grimm.

The company currently serves the automotive and non-automotive sectors evenly, with 50% of its sales going to each. It is pursuing business opportunities that would shift its product mix to 37% automotive, 33% industrial and 30% heavy truck. Eventually, it would like to see those three markets split in thirds; however, Grimm said no contracts have been won at this time.

“We’re essentially looking at other markets: railroad, wind power, construction and agriculture,” he said.

Since undergoing a recapitalization in March 2007, Citation has closed or downsized two primarily automotive plants. The company’s Butler, Ind., plant was idled indefinitely, and capacity at its Lufkin, Texas, plant was cut roughly in half.

Because of the recapitalization, Grimm said the company is now in position to achieve growth through acquisitions. It has also increased its European sales force to take advantage of the weak dollar.

“We have some flexibility, where frankly it’s a pretty turbulent time,” Grimm said. “Where there’s chaos, there’s opportunity.”