The Waupaca Foundry has closed down its ductile iron factory in Lawrenceville, Pennsylvania owing to weak demand.
The company said that the closure has affected 200 jobs. Waupaca had first announced its decision to shut down the unit in May owing to the factory’s capacity exceeding “demand in the supply chain.”
According to media reports, the closure will not affect the production of its automotive suspension parts at other facilities.
Waupaca employs 4,500 people across North America and manufactures iron castings for the automotive, construction, and oil and gas industries. In March, reports suggested that Hitachi Metals, which owns a majority stake in the foundry was considering divesting from it for around $1bn. However, the pandemic has affected further negotiations with potential buyers.