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Auburn restructures, lays off 20%

Auburn Foundry Inc., Auburn, IN, has idled 20 percent of its employees as it institutes a restructuring program, according to reports in Indiana. Unconfirmed details put the number of idled workers at 130, from production and salaried

positions.

The same reports say employment totaled 650 at the company prior to the restructuring, and that the total had been 750 earlier in 2003. The new job cuts were instituted October 10.

Auburn Foundry produces gray iron and ductile iron castings for automotive suppliers and aftermarket applications.

The foundry will idle an older cupola operation and confine production to its newer electric furnaces, working in three shifts. This effort is intended to bring production "into line with the levels of business that we expect and the environmental requirements that we must meet," according to information from Auburn president Thomas Woehlke in a September 30 letter to employees.

Woehlke explained that Auburn is being pressured by changing market demand, one result of which has been introducing ductile iron products to the foundry's product line. He reported the early results of that change have been positive.

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