Bethany Tabb, Courier-Times Staff Writer

A new proposal could save hundreds of jobs even if Metaldyne closes.

The New Castle plant's fate was discussed Monday by the New Castle Economic Development Directorate City Council Committee.

Jeana Davis, EDD director, said there's a local proposal being made to Chrysler from a potential new company. She declined to comment on what the company was or even what the proposal was.

But if it works, she said, it could save 300 to 400 jobs. If it doesn't work, she said, she'll still try to get other businesses in the building through the city's incubator program.

On May 29, a Metaldyne spokeswoman announced the plant would close within three months. That announcement came just two days after the corporation filed Chapter 11 bankruptcy.

A lack of business was cited as the reason for the closure. On May 29, spokeswoman Marge Sorge said the plant wasn't being utilized enough for its size. She said it was economically impossible to keep the plant open.

On Monday, Davis told the committee the plant is set to close Aug. 7, but she's working with the local management to save the plant. She said she's close to bringing two companies into the plant through the city's incubator program.

But Councilman Mark Koger asked why Davis is putting effort into Metaldyne. He said the situation is primarily out of the city's hands.

"What are we trying to save?" he said.

Council President Sandy York said she wanted to know what would happen to the incubator companies if another industry purchases the Metaldyne building.

Davis said she'd address those issues, but working on Metaldyne and the proposal is No. 1 on her radar.

She's not spending all of her time on it, she said, and she agreed that it's not all under her control.

"I'll drop everything I'm doing to help save 300 or 400 jobs," she said. "... I'm going to go down swinging to help save these jobs."

Metaldyne is owned by Japanese company Asahi Tec. It produces auto parts for Chrysler, Ford, General Motors and Toyota vehicles.
© Copyright 2024, The Courier-Times, New Castle, IN.