Navistar to Move Mid-range Engine Production out of Huntsville

www.chinatrucks.com:Navistar International Corp. announced today it will transfer its mid-range engine production in Huntsville to Melrose Park, Ill., resulting in the loss of 280 local jobs after the consolidation is completed late this summer.

 
Navistar, which will continue producing 13-liter engines at the big bore engine plant in Huntsville, was one of several area companies recently touted as top hubs for manufacturing during a special Huntsville City Council meeting discussing the Remington plant development.

In a statement, Navistar Chief Operating Officer Jack Allen said the company is consolidating to cut costs and improve business as a result of "too much excess engine manufacturing capacity in North America." The move will save Navistar approximately $22 million in annual operating costs.

"The consolidation will further lower the company's breakeven point, strengthen our competitiveness in the marketplace and help position Navistar for a return to profitability," he said.

Navistar operates two diesel engine plants that employ about 480 workers at Jetplex Industrial Park in the Port of Huntsville. The second $15.6 million Huntsville Navistar plant, which was built in 2008 and spans 300,000 square feet, will remain operational and continue producing engines for heavy-duty trucks.

The plant that is closing manufactures engines for medium-duty trucks. All of the machinery in the idled facility will remain on site for "potential strategic partnerships," a release from the Chamber of Commerce of Huntsville/Madison County said.

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