Sypris Closes Dana Plant Purchase
January 19, 2004—
Sypris Solutions announced the completion of their purchase of Dana Corp.'s manufacturing campus in Toluca, Mexico.
Sypris and Dana have an 8-year supply agreement that entails furnishing Dana with a wide range of drive train components. According to Sypris' press release, the outsourcing agreement will take place in phases over the next few years and will cover approximately $500 million in business.
Initial shipments will begin immediately from Toluca with the components to be incorporated into the steel and drive train assemblies for sale.
Dana Corp.'s manufacturing campus in Toluca includes four buildings that have been leased back to Dana for the use in certain machining and final assembly operations. The plant currently supplies the Heavy Vehicle Technologies and Systems Group of Dana with forged and machined components, axle shafts, knuckles, ring gears and steel arms, and input shafts.
The purchase price approximated $15.6 million and includes the inventory. In addition, 460 people will be transferred to Sypris as part of the transaction.