Navistar to Close East Side Foundry

INDIANAPOLIS — Navistar International Corporation announced that it will close its foundry operations in Indianapolis where it currently produces engine blocks and heads for its proprietary engines. This transition will occur during the first half of next year, and the company expects to complete the foundry closure in the summer of 2015.
Once completed, closing the Indianapolis foundry is expected to eliminate approximately 180 jobs and reduce Navistar’s operating costs by about $13 million annually. The company took an $11 million charge in Q4 2014 that includes employee separation benefits, pension and other postretirement contractual termination benefits, inventory reserves and other related costs. In addition, the company anticipates up to $40 million in additional charges for accelerated depreciation related to the closure of the Indianapolis foundry and related impacts during the first half of 2015.