Dana Corporation Announces Plans to Close Reading, Pa., Facility

Aug 22, 2000

    TOLEDO, Ohio, Aug. 22 /PRNewswire/ -- Dana Corporation (NYSE: DCN)
announced today that it plans to close its structural products manufacturing
facility in Reading, Pa.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    The specific date of the closure will be determined following discussions
with officials of the United Steelworkers of America, Local 3733, which
represents many of the workers in the facility.
    The financial impact of the closure will be determined in part by the
period of time the plant remains open and the outcome of discussions with the
union.  Currently, the closure is expected to result in a pre-tax charge
ranging from $65 to $75 million, most of which will be charged to expense in
the third quarter.
    Mike Greene, president of Dana's Structural Products Group, said the
closure of the 75-year-old plant reflects the continuing evolution taking
place in the automotive industry.  "The closing of the Reading manufacturing
plant is a direct result of changes in automotive supplier logistics
requirements.  Manufacturing efficiency now requires that our facilities be
located closer to our customers' operations," he said.  "Global
competitiveness, coupled with the requirement to serve our customers' evolving
needs, led to the decision to close the facility.
    "We will work to assist our people affected by the closure in finding
other employment opportunities within Dana and in the local area," Greene
said.  In addition, he said that the Structural Products Group plans to
maintain its Global Support Services operations in the Greater Berks County
area.  These services encompass product engineering, advanced engineering,
program management, and information technology operations.
    Dana Corporation is one of the world's largest suppliers to vehicle
manufacturers and their related aftermarkets.  Founded in 1904 and based in
Toledo, Ohio, the company operates some 320 major facilities in 32 countries
and employs more than 82,000 people.  The company reported sales of
$13.2 billion in 1999.  Dana's Internet address is http://www.dana.com .

SOURCE Dana Corporation

Web Site: http://www.dana.com

Photo Notes: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
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