New York--Lexington Precision Corp. has closed its LaGrange connector seals plant in Lagrange, Georgia and is relocating the unit's business to a site in Vienna, Ohio.
The closure relates to a decision by Delphi Corp.--Lexington PrecisionÂ´s largest customer--to take in-house the production of 36 high-volume connector seals that Lexington Precision previously had supplied exclusively to the Tier 1 automotive supplier, according to recent Lexington Precision filings with the Securities and Exchange Commission.
The firm had planned to close the LaGrange factory by July 28 but agreed in late July to extend the date to Aug. 31 at the request of Delphi, which agreed to price increases that should allow Lexington Precision to operate the facility at breakeven during the interim, according to the firmÂ´s second-quarter 10-Q report.
In all, Lexington Precision expects to incur about $587,000 in costs associated with the closure and consolidation. The firm said the LaGrange plant had incurred "significant operating losses" during 2004 and the first half of 2005.
Lexington Precision representatives declined to comment on the changes. A local newspaper report said the closing affected 44 employees and that the firm had laid off 76 other workers in January.