Visit MODERN CASTING’s Late-Breaking Metalcasting News at www.moderncasting.com North America Union Agreement Saves Navistar’s Indianapolis Casting


Union employees of truck maker Navistar’s Indianapolis Casting Corp. (ICC), Indianapolis, agreed to a new labor agreement that has stopped closure procedures that have been underway at the metalcasting facility for more than a year. The employees, represented by the


United Auto Workers (UAW) union, “voted to approve significant flexibility and cost improvements” as part of the agreement, according to a statement issued by Navistar. With the agreement in place, the metalcasting facility, which was set to close July 16, will now even- tually resume production. Because closing procedures were


nearly complete, the metalcasting facility is expected to continue in its idled state through the summer and begin a slow ramp-up in late fall based on demand. “Like many of the markets where we compete, the [metalcasting] business is extremely difficult,” said a spokes- person for Navistar whose name was withheld. “Our ICC business was no longer viable, and it took these changes in order for Navistar to continue to produce blocks at this [facility].” Navistar believes the changes to the labor agreement will improve com-


Neenah Enterprises Inc., Neenah, Wis., announced it has secured financing com- mitments for its exit from bankruptcy. The municipal and industrial market


casting supplier said it expects its emer- gence from bankruptcy to continue on schedule, with a confirmation hearing for its reorganization plan held on July 6 and closure on the financing completed two weeks later. Neenah announced in a statement that it will have reduced its debt by more than $270 million upon emergence. In connection with its exit from bankruptcy, Neenah will transition to a temporary executive management team composed of executives from Huron


MODERN CASTING / August 2010


INDUSTRY NEWS


Navistar recently has changed much of its casting sourcing strategy, and the saving of the Indianapolis plant could have an even greater effect.


petitiveness by increasing health care cost-sharing by the UAW-represented employees, expanding flexibility of job functions and creating a more predict- able and flexible cost structure. “This is a more contemporary labor contract,” the spokesperson said. “It’s reflective of the tough market, the glob-


Neenah Secures Bankruptcy Exit Financing


Consulting Services LLC, Chicago. Neenah has hired an executive recruiting firm to assist it in hiring permanent successors. Neenah and its subsidiaries filed vol-


untary petitions for reorganization un- der Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware on Feb. 3. Huron has served as the com- pany’s restructuring advisor during the reorganization process. Neenah is the indirect parent hold-


ing company of Neenah Foundry Co., which manufactures iron castings and steel forgings for the heavy municipal market and selected segments of the industrial markets.


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al industry and the constantly changing requirements needed to compete.” The new five-year agreement is re-


ported to be “stand-alone,” meaning it is separate from other contracts and no longer negotiated as part of the multi- site main labor agreement Navistar has with the UAW.


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Ashland, Süd-Chemie to Merge Metalcasting Divisions Süd-Chemie AG, Munich, Germany,


and Ashland Inc., Covington, Ky., have agreed to form a global joint venture that will merge their business activities in the metalcasting chemicals sector. The joint venture will be known


as ASK Chemicals GmbH and will be headquartered in Hilden, Germany. Süd-Chemie and Ashland each will hold a 50% share in the venture. Süd- Chemie will maintain operational management. The joint venture will employ approximately 1,300. “[The merger] creates a truly global [metalcasting] supply company,” said


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