A Michigan firm that is in bankruptcy has purchased some facilities of Wheland Automotive Industries, Chattanooga, Tenn., which is also in bankruptcy.
Hayes Lemmerz International Inc., Northville, Mich., has purchased the Centrifuse foundry and assets of Wheland Automotive Industries (WAI) from Wheland’s parent, North American Royalties, a company that filed under Chapter 11 Bankruptcy protection laws in November of last year.
Wheland has had a long-time and considerable presence in the foundry industry in Tennessee and was a major ferrous scrap consumer, but it is unclear now which of the foundries will resume operations and which may be shuttered permanently.
The purchase price was $4.1 million, according to Industrial Information Resources (IIR), Houston, Texas. Both companies’ bankruptcy courts have approved the purchase, according to IIR.
Located in Chattanooga, the Wheland foundry site actually includes three foundries (centrifuse, ductile, and gray iron foundries) and at one time employed 1,200 employees. It has now reduced staffing to approximately 70. The Wheland foundry completed a $30 million expansion in 2000.
Wheland Automotive Industries had been a long-time supplier to Hayes Lemmerz of
Centrifuse brake drum castings – high-alloy steel brake castings – used to make Hayes Lemmerz’ Centrifuse brake drums. Hayes Lemmerz filed for Chapter 11 reorganization in December 2001. According to IIR, company officials say this purchase “will serve to protect Hayes Lemmerz’ own production.”
Hayes Lemmerz makes automotive and commercial highway wheels, brakes, powertrain, suspension, structural, and other components.