Dana axes axle business

and two affiliates have entered into agreements with

, a subsidiary of The Boler Company, and its affiliates for the sale of Dana's trailer axle manufacturing business.

Under terms of the agreements, the buyers will acquire certain assets located in Lugoff, South Carolina, USA; Barrie, Ontario, Canada; and Wuxi, China, which are used to manufacture heavy-duty trailer axles and suspensions.

The assets are being sold for an aggregate price of approximately $38 million in cash and the buyer will assume certain liabilities related to the business.

The transactions are subject to the approval of the United States Bankruptcy Court for the Southern District of New York, which has jurisdiction over Dana's Chapter 11 reorganisation proceedings.

Dana has filed a motion with the Bankruptcy Court seeking approval of procedures that will provide an opportunity for competitive bids on the trailer axle assets before the sale is approved by the court. Dana expects the bidding process to be completed and the sale to close in the fourth quarter of 2006.