Rieter will close U.S. plant

By Bettina Mayer
Rieter Automotive Systems will close its factory in St. Joseph, Michigan, in the U.S., by the end of 2008. The plant produces aluminum heat shields, trunk and floor systems and employs about 50 people.
 
The Switzerland-based supplier of noise-control and thermal-insulation products said the closure is part of a program to improve productivity within its manufacturing network.
 
"We must take all necessary steps to secure Rieter's long-term competitiveness and improve overall efficiency and profitability. We need to reduce excess capacity," Richard Derr, Rieter Automotive North America CEO, said in a statement.
 
Rieter says light vehicle production of Ford Motor, General Motors and Chrysler in North America dropped about 15 percent in the first five months and negatively affected sales of Rieter Automotive North America.
 
During the first four months of the 2008 business year, Rieter's Automotive Systems posted a 4 percent drop in global sales.
 
Rieter says its operations in the U.S. and Canada have to cope with continued price pressure and much higher raw material and energy prices.
 
Since the end of 2007, Rieter Automotive has reduced the number of its employees in the U.S. and Canada by about 100 to 2,480.
 
In 2007, Rieter's North American operations had sales of 665.2 million Swiss francs (about $645.3 million), which comprised 28.2 percent of Rieter Automotive's total sales.
 
Rieter Automotive generated total sales of 2.36 billion Swiss francs (about $2.29 billion) in 2007 with 9,878 employees worldwide.
From: Automotive News Europe

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