Talks to sell 10 Collins & Aikman Corp. injection molding plants are continuing, but the slow pace of negotiations has prompted at least one of the firm's automaker customers to transfer some work.
The firm is being forced to cut more jobs - at one of the plants up for sale.
Collins & Aikman, which entered Chapter 11 with U.S. Bankruptcy Court in Detroit in May 2005, is in talks to sell nine North American plants to Cadence Innovation LLC and another plant, in Hermosillo, Mexico, to International Automotive Components Group. The deals are taking longer to complete than expected. Troy, Mich.-based Cadence and C&A, of Southfield, Mich., first announced in March they had a sales agreement for plants in the U.S. and Canada that employ 3,500.
IAC, created by New York financier Wilbur Ross, has been in talks since this spring for the Hermosillo molding operation, which supplies Ford Motor Co.'s assembly plant there that makes the Ford Fusion, Mercury Milan and Lincoln MKZ.
During a June 21 hearing, C&A lawyer Ray Schrock said he hoped the firms would have completed transactions in hand for a July 12 hearing.
The slow pace on completing a sale, however, has prompted one C&A customer to shift production of parts made at a plant in Rantoul, Ill. - one of the nine sites on Cadence's acquisition list. As a result, C&A, will begin permanent layoffs of 45 workers at Rantoul, spokesman David Youngman said July 5. Another 490 jobs remain at the site, though things could change as talks continue, or if customers alter their production plans.