Dana Corp. announces intent to outsource axle component production

Dana Corp. announced Thursday it has signed a letter of understanding to sell certain production assets of its heavy vehicle technologies and systems group to Sypris Solutions and to enter a long-term supply agreement with Sypris for related axle components. The asset sale would include Dana’s manufacturing plant in Morganton, N.C., and production assets from facilities in Toluca, Mexico, Glasgow, Ky., and Humboldt, Tenn. As part of the transaction, approximately 600 employees in Toluca and Morganton would be transferred to Sypris. Nick Cole, president of the heavy vehicle technologies and systems group, said divesting these assets is consistent with Dana’s long-term strategy of focusing on core products and processes. The transaction is subject to approval by Dana’s board of directors, regulatory approvals and other closing conditions.