Released on August 20, 2009

Grede Foundries Inc., Milwaukee, has announced intentions to close its Vassar, Mich., and Wichita, Kan., plants within the next four to six months, as the company continues to battle the current economic downturn.

Grede filed for Chapter 11 Bankruptcy protection in late June. The company at the time had secured a bid for purchase from Wayzata Investment Partners LLC, Wayzata, Minn., but was seeking other bids for a long-term owner.

“As most people know, Grede Foundries previously filed a formal reorganization plan and has been implementing a restructuring effort since that time,” said company Chairman Richard Koenings. “This step is part of that process.”

According to a statement attributed to Koenings, Grede expects the closures to “realign capacity and better position the company for profitability in a post recession worldwide economy.” The company expects to operate both facilities as usual while they gradually are being wound down. The closures should be complete by spring 2010.

The work done at the Wichita plant is expected to be transferred to other Grede facilities, but the company said a significant number of the products made at the Vassar facility, which previously had been listed for sale, will be discontinued. Koenings attributed the closures to the down market, particularly in the automotive industry.

“In order to restructure and return to profitability, it is necessary to reduce our capacity to reflect the new business environment in a worldwide economy and utilize our resources in the best way possible,” he said.

In April, Grede announced the closure of its Greenwood Foundry, Greenwood, S.C., which produced gray and ductile iron components for the automotive and other industrial, recreational and agricultural markets. According to Grede Executive Vice President Stewart Davis, the closure of that plant also was due to the automotive downturn. Koenings said that Grede’s facilities in Milwaukee and Reedsburg, Wis., St. Cloud, Minn., New Castle, Ind., and Iron Mountain, Mich., would not be impacted by the current reorganizational step.

“While hard decisions have to be made, our ultimate goal is to serve our customers, return the organization to profitability and preserve as many jobs as we can in the future,” Koenings said.