Dana Corp. plans to close an iron foundry in Muskegon by early August, eliminating 240 jobs, employees were told Wednesday.
The Toledo, Ohio-based auto parts maker plans to outsource its piston ring casting operation to Federal Mogul Corp.'s west Michigan operations, The Muskegon Chronicle reported.
"This decision was necessary due to the excess capacity of grey-iron piston ring castings," Dana's Automotive Systems Group President Mike Laisure said in a statement. "Our foundry is severely underutilized and no longer a viable operation."
The foundry's production workers are represented by United Auto Workers Local 637.
"We will do everything possible to support our people in their search for new employment," Laisure said.
Dana now has announced plans to eliminate nearly half of the 700 full-time jobs it had in Muskegon this year.
Earlier this week, the company said it would close its Statesville, N.C., facility, reduce its work force in Brugge, Belgium, and realign machining and assembly operations in North America and Europe.
Dana shares rose 34 cents to close at $17.24 Wednesday on the New York Stock Exchange.
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