Navistar makes closure of Chatham truck plant official

www.chinatrucks.com: Navistar has announced a North American restructuring that will see it permanently shutter its Chatham, Ont. truck plant.

The Chatham plant had been idled since June 2009, when the company failed to reach a deal with the Canadian Auto Workers union representing the plant's employees. As a result, Navistar notes, Chatham production was already absorbed by other Navistar truck plants.

"From a capacity standpoint, we are well positioned to meet demand expected in the last half of 2011 and further increases in 2012," said Dee Kapur, president, Navistar Truck Group. "We're seeing tremendous benefit from our flexible manufacturing strategy, which allows us to build more trucks - and a wider variety of them - at various plants."

Meanwhile, Navistar plans to consolidate motor coach production and close its Workhorse Custom Chassis subsidiary in Union City, Ind. These operations will be consolidated into other existing Navistar facilities to improve productivity, the company announced.

Once all its restructuring is complete, Navistar anticipates savings of $20-$30 million per year.

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