Citation Buys Iowa-Based Blackhawk, Will Allow Plant to Close – Released on November 30, 2009 –

Citation Corp., Novi, Mich., announced it has acquired Blackhawk Foundry & Machining Co., Davenport, Iowa, but will not maintain the plant’s operations.

According to a press release issued by Citation, Blackhawk’s Davenport facility will be closed by its current owners. Citation will acquire the company’s customer contracts and some equipment, which will be transferred to three of Citation’s facilities in Berlin, Wis., Bessemer, Ala., and Biscoe, N.C., by February 2010.

“Our focus continues to be on further strengthening our diversification strategy,” said Citation President and Chief Executive Officer Doug Grimm. “The Blackhawk acquisition further enhances our market diversification.”

In addition to the Blackhawk purchase, Citation announced the sale of its Albion, Ind., machine shop, a 68,000-sq.-ft. facility with 25 employees that primarily manufactures marine engine manifolds, to Busche Machine.

“The sale of our Albion facility allows us to concentrate on our core iron casting and machining capability,” Grimm said. “The Albion business fits better with Busche Machine’s principal products, markets and manufacturing footprint. We’re accelerating our effort to concentrate on core iron casting and machining, which includes our 250,000-sq.-ft. Menomonee Falls, Wis., facility that has 180 machining centers and employs 150 people.”

According to Grimm, Citation has reset its business model to reflect the global economic changes that have occurred during 2009. Citation is a privately held corporation that employs 1,100 at 10 manufacturing facilities. The company designs, develops and manufactures components for the transportation and industrial markets.

“A vast majority of the Blackhawk business is in the agriculture, energy, military and construction markets, which further bolsters our balance of industrial and transportation customers,” Grimm said.

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