Dana announces four plant closures

Dana Corporation announced four of eight facilities it plans to close during the next two years. The actions will consolidate production and are designed to balance capacity and take advantage of lower-cost manufacturing locations. Dana announced preliminary plans to close eight facilities last month.

The four facilities announced for closure are Dana's Syracuse, Ind., and Cape Girardeau, Mo., Traction Products facilities, and the company's Guelph and Thorold, Ontario, Canada, Structural Solutions plants.

Facility information is as follows:

  • The Syracuse plant employs approximately 65 people and manufactures axle components. The facility is expected to close by Sept. 30, 2007.
  • The Cape Girardeau plant employs approximately 200 people manufacturing axle components. The facility is expected to close by June 30, 2008.
  • The Guelph operation employs approximately 25 people manufacturing front and rear frame structures. The plant is expected to close by Feb. 28, 2007.
  • The Thorold structures facility employs approximately 150 people manufacturing stampings. The plant is expected to close by June 30, 2007.

Production from the Syracuse and Cape Girardeau facilities will be moved to Dana operations in Mexico. Closure of the Guelph plant coincides with the end of a customer program that comprised all production volume at the facility. The majority of the production at the Thorold operation will be moved to Dana's Elizabethtown, Ky., structures plant.

Dana Chairman and CEO Mike Burns said, "The decision to close any facility is extremely difficult and regrettable. But to become competitive and emerge from Chapter 11 as a viable company, it is absolutely critical that we further consolidate work across our facilities to reduce overcapacity and high operating costs."

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