Upon the completion of the facility, Core Molding Technologies will move the production of certain products from its Columbus, Ohio facility to the new location to more competitively serve certain customers located in that region. The company expects to move approximately 75 jobs away from Columbus as a result of the transfer. The actual reduction in personnel is expected to be less due to increased labor demand as a result of what the company says is projected recovery in the truck market and new growth opportunities. "By expanding our capabilities in Matamoros and freeing up capacity in our Columbus facility, we gain the flexibility to take on new business, as we had little room for growth in either facility," says president and CEO Kevin L. Barnett.
Core Molding Technologies also has announced a new supply agreement with truck manufacturer Navistar Inc. (Warrenville, Ill.). Under the terms of the agreement, Navistar will continue to purchase 100 percent of its original equipment and service requirements as they presently exist for specified fiberglass reinforced products from Core Molding Technologies through Oct. 31, 2013. The previous agreement was scheduled to run through Oct. 31, 2011. Navistar is Core Molding Technologies' largest customer, accounting for approximately 44 percent of the company's 2007 total revenue, and also is a significant stockholder, owning 9.8 percent of Core's outstanding common stock.