Released on February 3, 2009

U.S. Pipe and Foundry Co. LLC, Birmingham, Ala., will close its ductile iron pipe casting plant in North Birmingham, Ala., by March 31, according to an announcement by parent company Mueller Water Products Inc., Atlanta.

The plant closure is expected to eliminate approximately 260 positions. The company said production from the North Birmingham plant will be moved to U.S. Pipe’s Bessemer, Ala., and Union City, Calif., facilities.

Over the past several years, U.S. Pipe has invested in a new automated ductile iron pipe casting process. A metalcasting facility for the new technology was built adjacent to its existing Bessemer plant and launched in September 2008. According to a Mueller press release, the new technology and the downturn in the overall economy and its end markets has forced U.S. Pipe to address excess capacity in its other plants.

“The performance of our automated manufacturing process has exceeded our expectations for quality, efficiency and overall productivity,” said Gregory Hyland, chairman, Mueller’s president and chief executive officer. “As a result, we are able to consolidate production, eliminate fixed costs and improve productivity by leveraging the investment we made in upgrading our manufacturing technology.”

Hyland said that the need to repair or replace the country’s water infrastructure and a residential construction recovery should cause an eventual upturn in the demand for ductile pipe.

In connection with the North Birmingham plant closure, Mueller expects to incur a restructuring charge of approximately $15 million, with approximately $6 million in asset write-offs and $9 million in cash costs. The company also expects an incremental cash operating expense associated with the restructuring of approximately $2 million. However, annual savings are projected to be between $20 million and $25 million.

Mueller’s 12-month net sales through Dec. 31, 2009, were $1.4 billion. The company is comprised of three operating segments: Mueller Co., U.S. Pipe and Anvil. The company employs approximately 5,100.