Lisle-based Navistar International said it intends to close its Garland, Texas, truck manufacturing plant as part of its efforts to reduce costs. The closing, expected in the first half of 2013, will affect 900 employees.
"Closing a facility is always difficult because of its impact on the many great people who've been part of our company," said Troy Clarke, Navistar president and COO, said in a release. "But the fact is that Navistar has too much manufacturing capacity in North America and we must take quick action to improve our business and position the company for long-term success."
The Garland plant manufacturers Navistar's International WorkStar, PayStar and TranStar commercial trucks, as well as the MaxxPro military vehicle, according to Navistar's website. The company said it will move operations to its other North America facilities that build similar models beginning in January 2013. The company's website lists Springfield, Ohio, Barton, Ala. and Escobedo, Mexico as North America assembly plants, with a bus assembly facility in Tulsa, Okla.
The company says it expects to reduce operating costs by $25 million to $35 million annually. It will record a fourth-quarter 2012 charge, primarily for employee separation benefits, which is not expected to exceed $10 million on a pretax basis. In 2013, the company said it expects to record certain pretax charges primarily related to accelerated depreciation from $30 million to $50 million.