TOLEDO, Ohio -- Dana Corp. plans to eliminate 800 jobs in Canada and Australia because of expiring contracts. The company said it will take a $28 million charge in the fourth quarter and $10 million in 2006 or 2007 to pay for reductions.
Five hundred of the jobs will be cut at Dana's structural products plant in Thorold, Ontario, by December 2006. And 300 jobs at three components plants in Australia are scheduled for cuts by mid-2006, the company said in a press release on Tuesday, Dec. 20.
The moves came about a week after Dana said it will close plants in Danville, Ind.; Sheffield, Pa.; and Burlington, Ontario. The company also said it is moving production to plants in St. Clair, Mich., and Cambridge, Ontario.
The supplier said the closings are a consolidation of its thermal products group in North America. It said 200 workers will be affected.
Separately, Dana said it plans to begin assembling off-highway axles and transmissions in Gyor, Hungary, in the first quarter of 2006.
Dana said the Gyor plant initially will employ about 50 people in the assembly, testing, painting and packaging of axles and transmissions for agricultural and construction vehicles. These products will support European customers and export markets.
Dana, of Toledo, Ohio, supplies axles, driveshafts, structures and related systems, sealing, thermal management, fluid transfer and engine power products and chassis. It ranks No. 7 on the Automotive News list of the top 150 suppliers to North America with North American original-equipment parts sales of $5.98 billion in 2004.