Dana Closing Syracuse Plant
July 28, 2016 at 4:25 p.m.
TOLEDO, Ohio -ÊDana Corp. Tuesday announced four of eight facilities it plans to close during the next two years, including the Syracuse plant.
The actions will consolidate production and are designed to balance capacity and take advantage of lower-cost manufacturing locations. Dana announced preliminary plans to close eight facilities last month.
The Syracuse plant employs approximately 65 people and manufactures axle components. The facility is expected to close by Sept. 30.
In addition to Syracuse, plants in Cape Girardeau, Mo., and Guelph and Thorold, Ontario, Canada, will close.
Production from the Syracuse and Cape Girardeau facilities will be moved to Dana operations in Mexico. Closure of the Guelph plant coincides with the end of a customer program that comprised all production volume at the facility. The majority of the production at the Thorold operation will be moved to Dana's Elizabethtown, Ky., structures plant.
Dana Chairman and CEO Mike Burns said, "The decision to close any facility is extremely difficult and regrettable. But to become competitive and emerge from Chapter 11 as a viable company, it is absolutely critical that we further consolidate work across our facilities to reduce overcapacity and high operating costs."
Burns said four additional facility closures are expected to be finalized in 2007.
Dana expects to incur charges of approximately $26 million before taxes during the fourth quarter of 2006, and additional aggregate charges of approximately $19 million in 2007-2009 for total charges of $45 million before tax, in connection with the plant closures announced today.
Dana and some of its U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors in possession. Information about the bankruptcy proceedings can be found at www.dana.com/reorganization
While Dana continues its reorganization under Chapter 11, investments in its securities are highly speculative. Although shares of Dana common stock continue to trade on the OTC Bulletin Board under the symbol DCNAQ, the trading prices of the shares may have little or no relationship to the actual recovery, if any, by the holders under any eventual court-approved reorganization plan. The opportunity for any recovery by holders of Dana common stock under such reorganization plan is uncertain and shares of Dana common stock may be cancelled without any compensation pursuant to such plan. [[In-content Ad]]
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TOLEDO, Ohio -ÊDana Corp. Tuesday announced four of eight facilities it plans to close during the next two years, including the Syracuse plant.
The actions will consolidate production and are designed to balance capacity and take advantage of lower-cost manufacturing locations. Dana announced preliminary plans to close eight facilities last month.
The Syracuse plant employs approximately 65 people and manufactures axle components. The facility is expected to close by Sept. 30.
In addition to Syracuse, plants in Cape Girardeau, Mo., and Guelph and Thorold, Ontario, Canada, will close.
Production from the Syracuse and Cape Girardeau facilities will be moved to Dana operations in Mexico. Closure of the Guelph plant coincides with the end of a customer program that comprised all production volume at the facility. The majority of the production at the Thorold operation will be moved to Dana's Elizabethtown, Ky., structures plant.
Dana Chairman and CEO Mike Burns said, "The decision to close any facility is extremely difficult and regrettable. But to become competitive and emerge from Chapter 11 as a viable company, it is absolutely critical that we further consolidate work across our facilities to reduce overcapacity and high operating costs."
Burns said four additional facility closures are expected to be finalized in 2007.
Dana expects to incur charges of approximately $26 million before taxes during the fourth quarter of 2006, and additional aggregate charges of approximately $19 million in 2007-2009 for total charges of $45 million before tax, in connection with the plant closures announced today.
Dana and some of its U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors in possession. Information about the bankruptcy proceedings can be found at www.dana.com/reorganization
While Dana continues its reorganization under Chapter 11, investments in its securities are highly speculative. Although shares of Dana common stock continue to trade on the OTC Bulletin Board under the symbol DCNAQ, the trading prices of the shares may have little or no relationship to the actual recovery, if any, by the holders under any eventual court-approved reorganization plan. The opportunity for any recovery by holders of Dana common stock under such reorganization plan is uncertain and shares of Dana common stock may be cancelled without any compensation pursuant to such plan. [[In-content Ad]]