Detroit Diesel buys marine firm
Detroit Diesel Corp. will buy Outboard Marine Corp. for $500 million. Detroit Diesel wants to develop Outboard Marine's fuel injection technology to improve the next generation of marine engines. The deal helps diversify Detroit Diesel's product lineup, reducing dependence on the cyclical heavy-truck business.
TRANSMISSIONS - Simpson Industries Inc. will close its operations in Jackson, Mich., before the end of 1997. The company will move production of transmission and chassis components to other locations. About 135 employees will be affected. Pretax charges are expected to be about $4 million.
FORGED STEEL - Cerberus Partners LP, a New York-based group of investors, has formed a new automotive supplier. The supplier - dubbed the Long Horizons Group - will produce forged aluminum and steel components. Assets include Colfor Manufacturing Inc. and Ganton Technologies Inc., which together generate annual sales of $200 million. The new company will be headquartered in Southfield, Mich., a Detroit suburb.
FRAMES - Dana Corp. broke ground for a new frame manufacturing plant in Owensboro, Ky. The 100,000-square-foot facility will supply frames for Toyota's T100 pickup beginning in late 1998.
WHEELS - Superior Industries International Inc. will supply aluminum wheels for the Ford Expedition through 1998. The company also supplies aluminum wheels to Ford Motor Co., General Motors, BMW AG, Chrysler Corp. and others. Superior will supply wheels for the 1998 Lincoln Navigator and the F-150 pickup.
TRIM - The Ervins Group has opened a new interior trim plant in Quincy, Mich. Ervins produces prototype components, cut-and-sew products and embossments for leather, vinyl and other fabrics.
WIRING - EMF Corp. will acquire a plant in Burkesville, Ky., to produce electrical wire and plastic components. The company will invest $1 million in the 24,000-square-foot building. The facility will begin production in August.