Dana Corporation announced recently that it has signed a letter of understanding to sell certain production assets of Dana’s Heavy Vehicle Technologies and Systems Group to Sypris Solutions, Inc and to enter into a long-term supply agreement with Sypris for the related axle components.
The proposed asset sale includes Dana’s manufacturing facility in Morganton, North Carolina, and production assets from facilities in Toluca, Mexico; Glasgow, Kentucky; and Humboldt, Tennessee. Approximately 600 employees in Morganton and Toluca would be transferred to Sypris as part of the transaction.
The transaction is subject to the execution of definitive agreements, approval by Dana’s board of directors, applicable regulatory approvals, and other customary closing conditions.
Nick Cole, president of Dana’s Heavy Vehicle Technologies and Systems Group, said, ‘Divesting these non-core heavy vehicle assets is consistent with Dana’s long-term strategy of focusing on core products and processes.
‘Outsourcing these non-core commodities will help reduce our fixed investment without compromising customer service, key products, or top-line growth potential.’
Norm Boisvert, vice president, Commercial Vehicle Systems, added, ‘The people at Morganton and Tolcua have been important contributors to Dana’s Commercial Vehicle Systems group, and we are confident that they will have a positive long-term opportunity to grow and prosper with Sypris.’