Grede Foundries to consolidate, reorganize steel operations. (Industry News: North America).

Grede Foundries, Inc., Milwaukee, Wisconsin, will consolidate operations at its subsidiary, Milwaukee Steel Foundry, Milwaukee, into a more focused operation that will be known as the Milwaukee Alloy Foundry.

By October 1, 2003, Milwaukee Steel Foundry will discontinue its production of large carbon steel castings for the agricultural and construction machinery markets, while retaining the production of various stainless steel and other high-alloy castings for the automotive and truck markets. Out of the 480 people employed at Milwaukee Steel, 80 will be retained.

"This was a very difficult decision to make, especially considering the long history of this plant with the company," said Bruce Jacobs, CEO of Grede Foundries. "However, we ultimately came to the conclusion that the physical production assets available at Milwaukee Steel were just not competitive enough in the realities of today's steel casting market.

"We regret having to take this action and feel particularly bad about the 400 loyal employees who will be out of their jobs. But for the good of the whole company, we could no longer suffer the financial drain associated with continuing losses in the current steel casting market. We expect the new Milwaukee Alloy Foundry to allow us to continue a manufacturing presence in Milwaukee by serving existing and new customers in the alloy steel markets."

Grede Foundries operates nine foundries in the U.S. and is a joint venture partner in the ProezaGrede Foundry in Monterrey, Mexico. The firm is a recognized leading producer of high quality ferrous castings.