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Tipton manufacturer with 173 workers says its closing

 IBJ Staff
January 3, 2013
Keywords
Auto Industry, Factories, Manufacturers, Manufacturing & Technology, Regional News, Suppliers
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Steel Parts Manufacturing Inc. says it plans to close its plant in Tipton, ending employment for 173 workers.

The company, which manufactures precision components for transmissions in the automotive and heavy-duty markets, notified the Indiana Department of Workforce Development on Monday that the closure and layoffs will begin Feb. 28 and end by March 14.

Steel Parts, which operates in a 185,000-square-foot facility at 801 Berryman Pike, said it has been unsuccessful in reaching an agreement with U.S. Steel International Union Local 3875 to avert the closure.

A union representative did not return a phone call seeking comment Thursday morning. A Steel Parts official could not be immediately reached for comment.

Monomoy Capital Partners LP, a New York private equity fund, acquired the stock of Steel Parts in April 2011 from Resilience Capital Partners  for an undisclosed price.

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  • Factory
    AndreaJanuary 4, 2013 2:00 PM
    We also need to remember that steelparts has been there for what about 59 or 60 and provided jobs for a lot of people! My family has always worked there and retired from there! If it is needed by big 3 they need to come and help! Don't let another company go out we can't afford it! My mom works there for about 24 yrs and she needs her job and benefits! We don't need more on welfare line and these people want to work!
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  • Another view
    racpainJanuary 4, 2013 12:15 PM
    Why had the business been sold to VC's in the first place. Apparently when the previous management (pre-VC's)could not make enough profit to keep it out of the hands of the VC's because the profit level was not high enough to cover the employee benefits (management & union workers) it was sold to the first VC. I blame the management for letting the costs get to the point where the profit was not there to avoid a sale to the "vultures". Maybe the management should have taken a strike to get the point across that the company isn't a endless ATM machine for the employees. Possibly by doing that it may have been able to survive without the VC's. Maybe that question should be asked.
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  • Love VC's
    TerryJanuary 4, 2013 7:58 AM
    We heard all about the paper games created by venture capital firms during the recent election campaigns. A Venture Capital Partnership buys control of a company, either directly or from another VC Fund, writes off millions of dollars for tax purposes, then closes the firm and either moves the operation offshore, or better yet, sells the firms production equipment and expertise to a company in China. It is easy to blame the unions for this one, forgetting to check to see if "management" (code word for VC's) proposed a cut in pay and benefits if the employees wanted to keep their jobs. Sooner or later, state and federal agencies are going to realize that this scam, and a scam it really is, is nothing more than a tax dodge by Venture Capital Partnerships, with payments for equipment received at an offshore bank. So much for taking care of small business operations.
    Reply to CommentFlag Comment
  • Closure
    FletchmonJanuary 3, 2013 4:56 PM
    It will be interesting to see how this shows up (if it does) on the IEDC reporting when Mike Delph and the IN legislature review all the Daniels/IEDC track record. Maybe Mitch says IN leads in job creation (I doubt his word) but it also ranks high in job losses.
    Reply to CommentFlag Comment
  • another vulture capital...
    philJanuary 3, 2013 1:52 PM
    ...fail, looks like after being run (into the ground) by 2 different VC firms (who already stole their $$$) they're now trying to blame the workers, a play righ out of Willard Rmoney's handbook
    Reply to CommentFlag Comment

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