CITATION CORPORATION
27275 Haggerty Road
Suite 420
Novi, MI 48377
(248) 522-4500
June 26, 2008
Citation Corporation to Re-Balance Production Between Lufkin and Brewton Foundries
Novi, Mich., June 26, 2008 – Citation Corp. today announced that it will reduce capacity at its Lufkin, Texas foundry operations by the end of September 2008, transferring a select group of products to its Brewton, Ala., foundry. The consolidation will match the capacity of new lower market demands and help the company meet financial objectives.
“Balancing our foundry capacities allows us to eliminate process redundancies and optimize our manufacturing footprint,” said Cary Wood, Citation chief operating officer. “This strategic decision supports capital investments we’ve made at our Brewton plant and provides logistical advantages that enable us to better serve customers located in the southeastern region of the United States.”
Approximately 128 hourly and salaried employees at the Lufkin facility will be affected. Citation employs 466 workers at this location. The company anticipates gradually transitioning business and reducing its workforce starting in August.
Affected employees will receive job counseling through the local Bureau of Workforce Development and the Department of Commerce and Economic Opportunity.
“Lufkin remains one of Citation’s flagship facilities,” Wood continued. “The facility will continue to focus on exceeding the needs of its remaining customer base, including the growing Mexico segment. Citation continues to explore new markets with a strategic intent of filling the available Lufkin capacity.”
Citation is a privately-held corporation headquartered in Novi, Michigan. Citation employs 2,700 associates in Alabama, Texas, Indiana, Michigan, North Carolina and Wisconsin. The company designs, develops and manufactures high-quality cast, machined and assembled components for the automotive, heavy truck and industrial markets.
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For more information, contact: Jennifer Lee, The Millerschin Group at 248-276-1970
jlee@millerschingroup.com