CITATION CORPORATION
27275 Haggerty Road
Suite 420
Novi, MI 48377
(248) 522-4500
August 4, 2008
Citation Corporation Takes Proactive Steps to Address Market Conditions Supplier Completes Closing of Indiana Foundry, Consolidates Texas Foundry Capacity
Novi, Mich., August 4, 2008 – As part of its long-term business strategy to remain competitive in today’s market, Citation Corp. is proactively re-evaluating its business processes to maximize efficiencies. The company recently completed the closing of its Butler, Ind., permanent and semi-permanent aluminum molding operations and will reduce capacity at its Lufkin, Texas, foundry.
“While these decisions were difficult for us, it is critical for Citation to be proactive in refining our business and manufacturing strategies to meet our financial objectives in light of the forecasted downturn of the automotive industry,” said Citation Chief Executive Officer Doug Grimm. “These foundry consolidations have enabled us to focus on our core competencies, capitalize on investments we’ve made in growing sectors of our business and better serve our customers.”
At Citation’s Butler plant, equipment and production was transferred to facilities located in Bristol, Ind., and Milwaukee, owned by Diversified Machine Incorporated (DMI). Citation employed 144 employees at this facility where it manufactured permanent molded aluminum suspension and brake components for the automotive industry.
At its Lufkin facility, the workforce is being reduced and select products are being transferred to Citation’s Brewton, Ala., foundry. Approximately 128 of the 466 hourly and salaried employees at the Lufkin location will be affected. The company expects the consolidation to be complete in September.
Citation is a privately-held corporation headquartered in Novi, Michigan. Citation employs 2,600 employees in Alabama, Texas, Indiana, Michigan, North Carolina and Wisconsin. The company designs, develops and manufactures high-quality cast, machined and assembled components for the transportation and industrial markets.
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For more information, contact: Jennifer Lee, The Millerschin Group at 248-276-1970
jlee@millerschingroup.com