Ford selling a Michigan fuel-tank factory to Inergy Automotive Systems

Article by Christian A., on May 19, 2011

Ford Motor Co. is selling its fuel-tank factory in Milan, Michigan, to Inergy Automotive Systems LLC, a unit of France’s Cie. Plastic Omnium SA, for an undisclosed amount. The purchasing transaction is scheduled to close by June 1, according to Ford in a statement in Thursday.

The factory will be eventually closed and Inergy will replace it with a new one. Most of the 500 workers in the plant will be offered with jobs by Inergy or Ford, said Ford spokeswoman Della DiPietro.

This Michigan factory was one of the five remaining establishments of the 17 that Ford reclaimed as part of a 2005 bailout of its former auto parts subsidiary Visteon Corp.

The automaker intends to close a steering parts plant in Indianapolis within 12 months. It also has three other former Visteon factories up for sale. According to DiPietro, the price of the Michigan unit “is not material and will not be disclosed.”

Mark Blair, president of Automotive Components Holdings, said that the Inergy purchasing deal is another vital step in the strategic plan for Automotive Component Holdings, which is the unit that Ford created for the former Visteon plants.

According to Ford, the Michigan plant will be phased out over three years as workers and production move to the new facility. Approximately 200 of the 430 hourly workers in the plant belong to the UAW. They are also eligible for jobs at Ford factories, DiPietro disclosed.

Topics: ford

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