Released on Friday, May 04, 2007

Metaldyne Corp., Japan-based Asahi Tec’s Plymouth, Mich., company, announced it will close its Farmington Hills, Mich., plant by April 2008.

According to a company press release, the chassis and powertrain-producing facility will be shut down due to production cuts by its North American customers.

“This was a difficult but necessary decision,” said Tom Chambers, Metaldyne president and COO. “We must adjust our capacity as our customers reduce their production schedules.”

The shutdown follows several other North American cutbacks by Asahi Tec’s U.S.-based subsidiary, including a recent announcement to discontinue operations at Greenville, N.C., by December 2007. While work from that plant will be transferred to the nearby Greensboro, N.C., metalcaster, it is not yet known where Farmington’s workload will end up.

“We are assessing the competitiveness of our plants to see which operations can best absorb the work,” Chambers said. “We are working with the United Autoworkers Union, which represents Farminton Hills, on this process.”

The 112,000-sq.-ft. Farmington Hills facility currently employs 170, but according to Chambers, its elimination is necessary to make the company “agile and efficient.”