Dana Corp. has sold its Marion, Ohio, forging facility to Sypris Solutions Inc.
As a result of the sale, Dana will record an after-tax loss of approximately $7 million(5 cents per share) in the second quarter of 2001.
The Marion facility was acquired in 1998 when Dana purchased Eaton Corp.'s heavy axle and brake business. The 258,000-square-foot facility produces fully machined axle shafts and a variety of forgings, such as ring gears and helical gears, for heavy-duty truck applications. The facility employs approximately 220 people.
Dana Commercial Vehicle Systems President Rick Clayton said, "Dana has realized tremendous synergies since we purchased the Eaton heavy axle and brake businesses. At this time, the forging operation no longer fits within our manufacturing strategies. The decision to sell this business is consistent with Dana's long-term strategy of growth through innovation in the global vehicular market, and is not a reflection on our people there or on the business opportunities for that operation."
Dana's Commercial Vehicle Systems Unit designs, manufactures and markets steer axles, drive axles, trailer axles, auxiliary axles, driveshafts, steering shafts, brakes and suspensions. Major components, systems and modules are sold under the Spicer name. Dana's alliance with Eaton Corp.'s Truck Components provides drivetrain solutions under the Roadranger Drivetrain System.