Intermet To Close Mexican Machining Plant And Downsize Pulaski, Tenn., Die-Casting Plant.(Brief Article)

Intermet Corp. said that in the company's continuing cost-cutting and efficiency efforts, it plans to close its Reynosa, Tamaulipas, Mexico, machining facility and substantially downsize a die-casting plant in Pulaski, Tennessee.

The Reynosa Plant provides light-metal machining services for a number of Mexican customers as well as for Intermet's casting operations, the company said. The Pulaski Plant currently employs 178 people who manufacture and machine aluminum and magnesium die castings, it added. The company said that the Reynosa facility is projected to close in the second quarter of 2001.

According to Mike Ryan, Intermet's Executive Vice President of Operations, "Our decision to close the plant in Reynosa was based on a strategy to reduce our fixed-cost structures and to remain competitive in a global market. We will work with our customers to redirect work to our other North American machining facilities."

Intermet said it plans to begin downsizing the Pulaski facility immediately with significantly restructured operations scheduled to be completed by the end of the second quarter of this year. "After reviewing the Pulaski Plant's product and customer mix, we concluded that it was in the company's best interest to concentrate on core products," said Ryan. "We will outsource or eliminate products that do not fit within our aggressive strategy for future earnings growth. After restructuring, Pulaski will be a more efficient and focused plant." Ryan continued:

"For the year 2001, these actions will have no net effect on the company's financial performance. However, we expect the efficiencies gained will have a positive impact on the long- term profitability of Intermet." Ryan also said that while these decisions are always difficult, "the need to remain competitive in a very demanding and rapidly evolving industry requires us to take these measures."

With headquarters in Troy, Michigan, Intermet Corp. is a supplier of powertrain, chassis/suspension and structural components to the worldwide automotive industry. The company said it has more than 7,000 employees at facilities located in North America and Europe.

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