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. The company will transfer selected products to its Brewton, Ala., foundry. The consolidation will match lower market demands and help the company meet financial objectives.
"This strategic decision allows us to eliminate manufacturing redundancies and maximize our capacity at our Brewton foundry to support capital investments made at this location," said Cary Wood, Citation chief operating officer. "By relocating production to our Brewton facility, we are better able to serve customers located in the southeastern region of the United States."
Approximately 128 hourly and salaried employees 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.
Citation will explore new markets, including growing its business in Mexico, to fill the available capacity at the Lufkin plant.
"The current automotive business climate and Lufkin's reliance on truck and SUV sales made this reduction necessary," said Doug Morse, general manager of Citation's Lufkin facility. "Citation will employ approximately 350 people locally to support the remaining Lufkin customer base. We remain committed to our employees, their families and the greater Lufkin-Angelina County."
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.