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www.moderncasting.com North America Chrysler to Invest $43 Million in Kokomo Casting, Transmission
Investors Purchase Two Former Intermet Plants
A group of investors pur-
chased the former Intermet metalcasting facilities in Rad- ford, Va., and Lynchburg, Va., on May 7 and plans to restart the Radford-based ductile iron plant within the next six weeks. According to one of the prin-
cipals in the deal, the metalcast- ing assets were purchased by a Michigan-based group that is part owner of Cadillac Casting Inc., Cadillac, Mich., and other manufacturing assets. “It was kind of a package deal
to buy both of the plants,” said Cadillac CEO Dan Minor, one of the investors. “We are going to concentrate on Radford.” According to Minor, the in-
Kokomo Casting will produce components for Chrysler’s World Engine, a 2.0- and 2.4-liter I-4 model used in the Chrysler Sebring Convertible, among other models.
Chrysler Group LLC, Auburn Hills,
Mich., announced it will invest $43 million in new equipment and tooling to expand its Kokomo Casting and Kokomo Transmission manufactur- ing plants. The operations, both in Kokomo,
Ind., will see the addition of 399 new positions from the investment, includ- ing up to 379 to be filled by employees called back from layoff status and 20 new hires in supervisory positions. The investment will be used to in-
crease capacity at the plants, adapt them to support production of Chrysler’s World Engine and improve processes for the 62TE transmission program. The World Engine, a 2.0- and 2.4-liter I-4 model used in the Chrysler Sebring and
Sebring Convertible, Jeep Compass and Patriot, and Dodge Avenger, Caliber and Journey, is built at a facility in Dundee, Mich. The 62TE transmission is used in the Sebring, Sebring Convertible and Town & Country, and the Dodge Avenger, Journey and Grand Caravan. “As Chrysler Group works to imple-
ment the business plan outlined on Nov. 4, 2009, our facilities in Kokomo will play an integral role in achieving those objectives,” said Scott Garberd- ing, senior vice president and head of manufacturing at Chrysler. The investment brings Chrysler’s
total spending on its powertrain opera- tions since 2007 to nearly $1 billion, according to a press release issued by the company.
MC
McWane Idles Original, 89-Year-Old Ductile Iron Pipe Plant McWane Inc. recently announced
it will temporarily idle its Birming- ham, Ala., ductile iron pipe cast- ing plant, the company’s original,
MODERN CASTING / June 2010
89-year-old manufacturing facility. “As a result of the continuing slump in the nation’s economy and the hous- (continued on page 11)
vestors had been working with Huron Consulting Group and the former Intermet ownership for two months to finalize the facility purchases. Minor said his group did not yet have a plan for the Lynchburg plant, but he expects the Radford plant to be operational in four to six weeks. The facility, which hasn’t poured iron since Dec. 17, 2009, must be brought back up to production speed and some of its capacity must be sold before that can happen. “[The facility] has two auto-
matic mold machines, is roughly 200,000 sq. ft., and offers state- of-the-art continuous flow,” Minor said. “It is capable of producing about 90,000 tons of castings per year, and we believe we can start it with 20,000 tons of castings [sold].” In addition to the safety
critical automotive chassis cast- ings produced at the plant by the previous owners, the new
(continued on page 11)
INDUSTRY NEWS
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