TRW Automotive Close Brake Plant

Auto parts supplier TRW Automotive Inc. said on Thursday it plans to close a Michigan brake components plant by July 2006 because of increasing industry pricing pressures.

Operations at the Jackson, Michigan, plant, which employs 400 workers, will be consolidated into other North American operations, according to the company. The plant is operating at a profit now with a fairly high percentage of capacity in use, but prices on calipers and rear disc brakes are dropping, making it impossible to replace expiring contracts with profitable new business, TRW said.

The cost of the closing will be calculated after TRW has negotiated severance and other issues with the United Steelworkers union, which represents the workers, the company added. The plant is part of TRW’s Kelsey-Hayes Co. subsidiary.

Earlier in August, TRW said it planned to increase its restructuring plans for the year to offset pricing pressures and North American industry vehicle output cuts.