Delphi to close plant, lay off 200

Delphi to close plant, lay off 200

	Published : Thu, 13 Sep 2007 22:02 By : Agencies Print this Story

MILWAUKEE (AP) - Continuing its plan to close or sell plants no longer considered part of its core business, Delphi Corp. formally told the state it will close its powertrain-systems plant in Oak Creek around the end of the year, laying off about 200 employees.

The layoffs, which include mostly manufacturing positions, are expected to be permanent.

Delphi's other Milwaukee-area plant makes automotive electronics and safety equipment. Company spokesman Lindsey Williams said that plant, with its nearly 700 employees, will be closed before the end of next year.

Delphi confirmed the Oak Creek plant closure with the state this week in a letter that Williams described as a legal formality.

'We announced our transformation plan in March of '06,' he said. 'What's creating some angst now is people picked up on the (letter) but it's nothing new that hasn't already been announced.'

The struggling auto-parts supplier, based in Troy, Mich., used to be part of General Motors Corp. before it was spun off as a separate company in 1999. It filed for Chapter 11 bankruptcy in 2005.

The company had said previously it would close or sell 21 of its 29 U.S. plants but it hadn't provided exact dates of the Wisconsin closings.

Lindsey said the plant closures included attrition plans that offered displaced workers retirement options.

After being forewarned of the plant closing two years ago, the state Department of Workforce Development in May approved $251,000 in federal funds toward employment-assistance services to workers laid off at Delphi and other Milwaukee-area companies.

'These funds will assist dislocated workers in finding new employment, continuing their education or expanding their existing skill sets,' said department spokeswoman Jessica Erickson.

Last week Delphi filed a reorganization plan with a federal bankruptcy court that would enable it to emerge from bankruptcy protection by the end of the year.

In August the company settled lawsuits by investors who accused the company's former managers of fraud.