Courier-Times Staff Report
Metaldyne will close in a matter of months as a result of the economic downturn.
Corporate spokeswoman Marge Sorge said the plant would close in no more than 90 days.
The news came just two days after the Michigan-based corporation filed Chapter 11 bankruptcy protection. At that time, Sorge had said Metaldyne would sell many of its assets but did not plan to market New Castle.
On Thursday, Sorge said Metaldyne would talk to Chrysler about the future of the New Castle plant. Those talks concluded with a decision to close the plant after its products have been "resourced," she said.
Employees were told early Thursday afternoon.
Sorge said it was a difficult decision for the company to make. But the plant wasn't being utilized enough for its size, she said, especially in the middle of an economic downturn.
"The lack of business has made it economically impossible to keep the operation open," Sorge said.
Chrysler will negotiate retiree benefits and severance pay with United Auto Workers Local 371, Sorge said.
The New Castle plant became part of Metaldyne in 2004. It was one of Henry County's largest employers, reaching as many as 1,000 employees in 2006.
But last year a string of layoffs began in February and continued until more than 250 people were out of work in 2008.
The situation worsened when Chrysler filed bankruptcy and halted production until it completed its deal with Italian carmaker Fiat. That forced Metaldyne to stop producing parts for Chrysler, its largest customer that made up 70 percent of the plant.
About 280 people were affected by that layoff, leaving only 83 employees in the plant.
Metaldyne is owned by Japanese company Asahi Tec. It produces auto parts for Chrysler, Ford, General Motors and Toyota vehicles.
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