Key Plastics Announces Intention to Close Manufacturing Facility in Indiana

Key Plastics L.L.C., a global leader in engineered plastics and assemblies for the automotive industry, today announced its intention to close its operations in Hartford City, Indiana consolidating that business into its other North American manufacturing sites during 2011.

The consolidation action is being taken to optimize excess capacity generated by strong operational efficiency improvements experienced over the past 18 months. The revenues for the company have increased by 33% from 2009 to 2010 with US based operations increasing by 47% over the same period.

"The decision to consolidate a manufacturing site is always difficult. In this case, the action will result in a very efficient and well utilized manufacturing footprint in our North American operations and presented a compelling business case which could not be overlooked. As we look to grow our business we commit ourselves at Key Plastics to the continuous improvement of our products and our cost structure. Both are required to enable us to present Key Plastics as the most competitive sourcing option for our customers. While revenues have increased sharply for the company we have not lost sight that we must constantly improve our cost structure if we expect to compete long term. This action is directly aligned with this obligation," said Terry Gohl the company's CEO.