Intermet plans to close two Wisconsin plants

By Jeff Pines

Washington, Dec. 15 - Intermet Corp. plans to close two plants in Racine, Wis., during the second quarter of next year, the company said.

Intermet cited high costs and the "significant underutilization" of casting and machinery capacity as the need for labor concessions. The company asked the union employees, represented by the United Auto Workers Local 627, for concessions, which were voted down on Dec. 12.

"Intermet's restructuring and turnaround plan called for significant changes in order to make the Sturtevant operations viable. Unfortunately, the final concessions offer we proposed to the union bargaining committee was not acceptable to the employees," said Gary Ruff, Intermet's chairman and chief executive officer, in a news release.

The Troy-Mich.-based powertrain and chasis manufacturer expects to record costs related to the closures of $13 million to $16 million during the fourth quarter of 2004 and expects to incur additional related costs during the wind-down period.

The plants employ 603 workers and managers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.