Navistar International said Monday it plans to close its foundry operations in Indianapolis in summer 2015.
Navistar said it will eliminate 180 jobs and expects to reduce costs by $13 million annually.
The foundry produces engine blocks and heads for Navistar engines. The Lisle-based company said it plans to source those components from a supplier.
“Closing a facility is a difficult decision because of its impact on the many great people who’ve been part of our company,” said Persio Lisboa, Navistar’s president of operations. “We will treat people with dignity and respect throughout this process.”
Navistar said it took a $11 million charge in the fourth quarter of this year, including employee separation benefits and pension benefits. It expects to take up to $40 million in additional charges for accelerated depreciation related to the closing during the first half of next year.
Navistar is set to report fourth-quarter earnings Tuesday. Analysts are expecting profit of 16 cents a share on revenue of $3 billion, according to Yahoo.
Navistar is on a turnaround following its failure to meet 2010 engine emissions standards. The plan has included outfitting some of its trucks and buses with engines from Cummins, closing plants and laying off workers. Navistar also combined its technology with that of Cummins to make new engines that meet federal emission standards.
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