June 11, 2009
Detroit Tool Metal Products (DTMP) today announced that it will consolidate to one central facility in Lebanon, Missouri, closing its Fort Madison, Iowa, site by the end of the year. Key management and staff may be offered relocation from Fort Madison to Lebanon and important tools and equipment will be transferred.
The consolidation is taking place to cut costs, to improve customer service, and to make the company more competitive during the economic downturn. DTMP will work to assist in the support of any displaced Iowa workers.
"Our employees in Fort Madison are part of the DTMP family and this decision has not been easy for us," said Steve Westfall, CEO and President of DTMP. "We will do whatever we can to lessen the impact on them and the surrounding community. But with the pressures of this challenging economy, it became clear that a change was necessary."
"By consolidating in Lebanon we will be able to provide 'one stop shopping,' improved quality, service and competitive pricing," said Westfall.
A new Engineering Center is being created in Lebanon where the company plans to improve design capacity to better launch new products. The new center will have responsibility for tooling design, product improvement, improved manufacturing processes, product qualification, and new product design.
"With the Engineering Center at the starting point of everything we do going forward—and with DTMP's capabilities (stamping, fabrication, welding, and assembly) in one place—we will be more competitive and quicker to respond to changing requirements," said Westfall.
According to Westfall, the company considered many factors as part of the decision to consolidate operations in Lebanon. The efficiency of consolidated operations was a key point. Lebanon is an attractive business location due to its competitive cost structure, ability to attract talented employees, and location near Springfield.
It is anticipated that the relocation of equipment to Lebanon will be well under way through September 2009, followed by qualification of product and formal production of customer parts planned in late 2009. The company also will continue producing finished goods inventory for its customers.