Dana names 4 plants to close

DETROIT -- Troubled auto supplier Dana Corp. today revealed the first four of eight North American factories it plans to close in the next two years.Dana CEO Mike Burns in November launched a plan to cut between $405 million and $540 million a year in expenses. In addition to closing eight plants, the supplier plans to renegotiate contract terms with customers, renegotiate labor contracts and end retiree health care.Dana, of Toledo, Ohio, has been operating under Chapter 11 bankruptcy protection since March 3. The four plants slated for closing are in: Syracuse, Ind. -- The plant employs about 65 people and makes axle components. The factory is expected to close by Sept. 30, 2007. Cape Girardeau, Mo. -- The plant employs about 200 people and makes axle components. The factory is expected to close by June 30, 2008. Guelph, Ontario -- The plant employs about 25 people and makes front and rear frame structures. The factory is expected to close by Feb. 28, 2007. Thorold, Ontario -- The plant employs about 150 people and makes vehicle stampings. The factory is expected to close by June 30, 2007.Dana said that production from the Syracuse and Cape Girardeau plants will be moved to Dana operations in Mexico. The Guelph plant is closing with the end of a customer contract. Most of the production at the Thorold factory will be moved to Dana's Elizabethtown, Ky., structures plant, Dana said."The decision to close any facility is extremely difficult and regrettable," Burns said in a press release. "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."Burns said that four more plant closings are expected to be completed in 2007. The company expects to take $45 million in charges through 2009 for the plant closings, including $26 million in the fourth quarter of 2006. Dana ranks No. 17 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $8.61 billion in 2005.You may e-mail Philip Nussel at pnussel@crain.com

Dana names 4 plants to close

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