INTERMET Announces Plans to Close Decatur, Illinois, Foundry
March 29 2005 - 1:40PM
PR Newswire (US)
INTERMET Announces Plans to Close Decatur, Illinois, Foundry
Closure part of ongoing restructuring activities TROY, Mich., March
29 /PRNewswire-FirstCall/ -- INTERMET Corporation (INMTQ:PK) today
announced that it has developed plans to close its ductile- iron
foundry in Decatur, Illinois. The company said it intends to meet
with Local 6-728 of the Paper, Allied-Industrial, Chemical &
Energy Workers International Union, which represents hourly
employees at the plant, to discuss the closure. If INTERMET
proceeds with its plans, the facility is expected to close by
December 31, 2005. The INTERMET Decatur Foundry, which currently
has 320 active employees, manufactures ductile-iron cast components
for a number of automakers and Tier 1 suppliers. Commenting on the
announcement, Gary F. Ruff, INTERMET Chairman and CEO, said, "While
the Decatur Foundry has been important for our ductile-iron
business in the past, exposure to legacy and other fixed costs at
this location, coupled with INTERMET's capacity-optimization
strategy relative to its plan of reorganization, requires us to
consider this action. We believe that closure of the Decatur
facility would allow INTERMET to become more competitive as we
emerge from Chapter 11, while preserving flexibility in our Ferrous
Metals Group to ensure that future market demand can be met. If the
foundry is closed, it is our intention to transfer its business to
other INTERMET ductile-iron foundries in Columbus, Ga., Hibbing,
Minn., Lynchburg, Va., and Radford, Va." Local officials of the
city of Decatur also were notified today of the company's plans to
close the plant. About INTERMET With headquarters in Troy,
Michigan, INTERMET Corporation is a manufacturer of powertrain,
chassis/suspension and structural components for the automotive
industry. The company has approximately 5,800 employees worldwide.
More information is available on the Internet at
http://www.intermet.com/ . Specific information relating to the
Chapter 11 cases filed by INTERMET and certain of its domestic
subsidiaries can be found on the Internet at
http://www.administar.net/intermet . Cautionary Statement This news
release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The words
"intends," "expected," "believe," "intention," and similar words
and expressions identify forward-looking statements. These
statements are not guarantees of future performance but instead
involve various risks and uncertainties. INTERMET's actual results
may differ materially from those suggested by its forward- looking
statements due to factors such as: the economic cost, management
distraction and lost business opportunities associated with
bankruptcy proceedings; INTERMET's continued access to its DIP
financing; the high cost of scrap steel and the possibility that
scrap steel costs will remain at high levels or continue to
increase, which would have further negative effects on INTERMET's
profitability, cash flow, liquidity and ability to borrow;
fluctuations in the cost of other raw materials, including the cost
of energy, aluminum, zinc, magnesium and alloys, and INTERMET's
ability, if any, to pass those costs on to its customers; pricing
practices of INTERMET's customers, including changes in their
payment terms resulting from the discontinuation of early payment
programs and continuing demands for price concessions as a
condition to retaining current business or obtaining new business,
and the negative effect that price concessions have on profit
margins; changes in procurement practices and policies of
INTERMET's customers for automotive components, including the risk
of the loss of major customers or the loss of current or
prospective vehicle programs as a result of INTERMET's financial
condition and prospects (or otherwise); possible inability to close
unprofitable plants or to transfer work from one plant to another
because of the related costs or customer requirements; general
economic conditions, including any downturn in the markets in which
INTERMET operates; fluctuations in automobile and light and heavy
truck production, which directly affect demand for INTERMET's
products; deterioration in the market share of any of INTERMET's
major customers; fluctuations in foreign currency exchange rates;
work stoppages or other labor disputes that could disrupt
production at INTERMET's facilities or those of its customers;
continuing changes in environmental regulations to which INTERMET
is subject, and the costs INTERMET will incur in meeting more
stringent regulations; factors or presently unknown circumstances
that may result in impairment of INTERMET's assets, including
further write-downs of its goodwill; and other risks as detailed
from time to time in INTERMET's periodic SEC reports. DATASOURCE:
INTERMET Corporation CONTACT: Mike Kelly of INTERMET Corporation,
+1-248-952-2500 Web site: http://www.intermet.com/
http://www.administar.net/intermet
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