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Dana Picks Four Plants for Closing

Operations produce axles, automotive structures, stampings

December 12, 2006 — Dana Corp., still in Chapter 11 bankruptcy reorganization, has named four of eight facilities it intends to close within two years. The target of eight plants was set last month, and described as efforts to consolidate production and balance operating capacity with market demand. Dana has said the decisions on closings will take into consideration the cost advantages of various manufacturing locations.

Chairman and CEO Mike Burns called the decisions to close plants “extremely difficult and regrettable. But to become competitive and emerge from Chapter 11 as a viable company, it is absolutely critical that we further consolidate work across our facilities to reduce overcapacity and high operating costs." He said four more plants will be identified in 2007.

The four plants to be closed are at Syracuse, IN, and Cape Girardeau, MO, which are part of Dana's Traction Products business,, and the Structural Solutions division plants at Guelph and Thorold, ON.

The Traction Products plants manufacture axle components. The Indiana operation will close by September 30, 2007; and the Missouri plant will close by June 30, 2008. The production activities of these plants will be relocated to Mexico.

The Guelph facility produces front and rear frame structures, and will close by February 28, 2007, coincident with the end of the customer program. The Thorold facility manufactures stampings, and will close by June 30, 2007. Most of the production volume will be reassigned to Dana's Elizabethtown, KY, plant.

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