Navistar International says it will close its Garland, Texas, truck manufacturing operation by the first half of 2013.
“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, president/COO. “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.”
About 900 people work at the plant, and Navistar said most will be laid off. Production will be moved to other Navistar factories.
The move will reduce costs by $25 to $35 million annually, the company said, and it will record a fourth-quarter 2012 charge that is not expected to exceed $10 million on a pre-tax basis.
The move follows an announcement earlier this week that the company would be willing to look at the sale of any part of its business, according to Crain’s Chicago Business.