Navistar, Core Molding append supply agreement

Core Molding Technologies (Core) has signed an addendum to its Comprehensive Supply Agreement with N

In accordance with this addendum, Core has agreed to shift production of certain products from its Columbus, Ohio facility to its Matamoros, Mexico facility.

According to the company, the shift from Columbus to Matamoros is being driven by Navistar's relocation of certain production to its Escobedo, Mexico assembly plant. As per the supply agreement, Navistar will continue to purchase 100% of its original equipment and service requirements, which exist for fiberglass reinforced products, from Core.

Navitsar said that Core also plans to incur approximately $3m of expense for transfer and startup costs and $1m of capital associated with this move. Core expects to transfer approximately 90 positions from Columbus to Matamoros by the end of June, as a result of this production relocation.

Kevin Barnett, president and CEO of Core, said: "This move allows us to better serve Navistar by reducing logistical costs associated with our products and improves our overall competitiveness. We look forward to a continued long term relationship with Navistar.

"We are also sensitive to the impact of this move on our Columbus work force who have contributed so much to our Company, however this move could not be avoided due to Navistar's production changes. Core continues to be very committed to Columbus and will increase its efforts to attract new business to the Columbus facility as a result of this transfer."