Released on September 28, 2008

Citation Corp., Novi, Mich., announced it will eliminate 18% of its workforce and shut down its Lufkin, Texas, metalcasting facility, a plant it had previously throttled back to half-capacity.

The company announced the changes concurrently with a widespread corporate restructuring program. A press release issued by Citation indicated it would now attempt to focus on emerging markets and align its capacity with customer demand. The company also has reorganized into two business units—industrial and transportation.
 
According to the company’s announcement, the Lufkin closing is in response to decreased automotive industry demand. The plant is scheduled for closure or sale by March 2009. Citation began reducing capacity at the facility in August by transferring some products to its Brewton, Ala., metalcasting facility, which has similar equipment. This initial consolidation will be complete in October.
 
“After further assessment and the continued lower production demand, we have made the difficult decision to close our Lufkin facility,” said Cary Wood, chief operating officer for Citation. “The closing…positions us for future growth in the transportation market and other growing sectors of our business.”
 
Citation currently employs 35 salaried and approximately 340 hourly workers at its Lufkin facility. Affected employees will receive job counseling through the local Bureau of Workforce Development and the Department of Commerce and Economic Opportunity.
 
Citation continues to employ 2,600 employees in Alabama, Texas, Indiana, Michigan, North Carolina and Wisconsin.