BLOOMFIELD HILLS, MICH. - Newcor Inc. will close its Livonia, Mich., rotational molding and plastisol slush-casting plant and move production to its Deckerville, Mich., facility during the next several months.
Newcor expects cost savings from closing the small, 60-employee Livonia operation, according to Milton Roye, vice president of Newcor's engineered rubber and plastics group.
Livonia makes automotive clips and rotomolded boots for auto gear cases and transmissions, Roye said in a telephone interview from Newcor's headquarters in Bloomfield Hills. It mainly processes PVC.
Keith Hale, Newcor president and chief executive officer, said in a news release that Livonia's closing is part of Newcor's consolidation to strengthen its financial position. In January, Newcor closed an Auburn Hills, Mich., rubber and plastics plant that employed about 40, Roye said.
Deckerville is Newcor's largest plant. Its other plastics processing facilities include an injection molding operation in East Troy, Wis., and an injection molding and plastisol dipping plant in Walkerton, Ind.
Roye estimates that two-thirds of Newcor's $242 million in sales last year were in precision-machined metal components.
Automotive is its largest market, accounting for 42 percent of sales. Medical markets are a third of sales and agricultural and off-road vehicles represent about 15 percent of sales.
Newcor trades on the American Stock Exchange.