Tower Automotive to phase out Toronto aluminum foundry and mini-mill by Aug. 31

By Caroline Salls

Pittsburgh, June 27 - Tower Automotive, Inc. will phase out production at its Toronto aluminum foundry and mini-mill by Aug. 31 as part of its restructuring plan, according to an 8-K filing with the Securities and Exchange Commission.

According to the filing, the company's strategy is to improve operational efficiency and cost competitiveness while focusing on its core business of automotive structural stampings and assemblies.

Total estimated costs associated with the foundry and mini-mill closure will be $19.9 million, including $4.3 million in employee-related costs, $14.5 million in asset impairment charges, $700,000 in other non-cash charges and $400,000 in other costs.

The company said it also expects $4.7 million in future cash expenditures in connection with the closure.

The Novi, Mich.-based auto parts maker filed for bankruptcy on Feb. 1, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-10578.

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