Dana Corp. announced this week that it will consolidate manufacturing of off-highway transmissions and axles, which will result in the closure of Dana's Statesville, N.C., facility
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The company also announced a work force reduction in Brugge, Belgium, and the realignment of machining and assembly operations in North America and Europe.
The consolidation and related transfer of production assets are expected to be completed by December 2005. Production in Statesville is scheduled to end in September. These actions will eliminate about 300 jobs and result in an after-tax charge of approximately $25 million, of which $22 million will be recorded in the fourth quarter of 2004.
Outplacement training and separation benefits will be provided to the affected employees. Additionally, these people will be kept informed of openings at other Dana facilities.
"The decision to consolidate manufacturing was necessary to strengthen the competitiveness of this business long term," said Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems Group. "We're committed to sustaining and growing our leadership position among off-highway vehicle manufacturers.
"Dana is also committed to helping the people affected by this consolidation in their transition to new employment. These people have served Dana and our customers well for many years, and they deserve our thanks and our support," added Cole.
For more information, visit www.dana.com.