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On Aug. 8, Intermet laid off 56 workers at the Radford plant. Remaining employment there is about 160, according to Intermet spokesman Gordon Cole.
Intermet said the filing followed "60 days of unprecedented low automotive sales volumes" and high prices for commodities, including scrap metal. The company said its ferrous segment, which includes the New River Foundry, has been hit hard by declining markets for big trucks and sport utility vehicles.
Intermet does not supply the Volvo truck plant in Dublin, a major New River Valley employer. Volvo on Thursday announced a business reorganization that could lower truck production at the plant beginning in the fourth quarter.
The foundry layoffs last week reflected market conditions affecting many automotive industry suppliers and were unrelated to the bankruptcy filing, Cole said.
United Steelworkers Local 9336 is the bargaining unit for union members at the New River Foundry. William Oliver, president, said he believes there will be a comeback.
"We're hoping to rebound and come through it," he said. "Right now, it's too early to see what's going to happen."
The Texas-based automotive supplier, which has 11 other manufacturing plants nationwide, said it will review all its operations.
"Decisions regarding employment and operations will continue to be made on the basis of our business levels," Cole wrote in an e-mail.
Even with recent cutbacks, the foundry is one of Radford's largest employers. Radford Mayor Tom Starnes said Thursday he knew bad news was on its way from the foundry.
"They didn't really give us a warning, though they did tell us there was going to be an announcement," he said. "Generally, if you're not invited to the press conference, the news is not good."
Starnes said he was wary even before hearing news of an announcement.
"You could just drive by the parking lot and judge from the number of vehicles there that there was not a lot of activity going on," he said.
In addition to being a top employer, Intermet is also the city's largest utility customer -- using more water and electricity than any other business in the city, Starnes noted.
Like many localities, Radford runs its own water treatment and distribution system. But Radford also operates an electrical system. The profit it generates is used to offset city real estate taxes. If a major customer such as Intermet were to fall out of the system, the costs for each remaining customer would rise and the city's profits would fall.
The city is beginning to draft a plan to deal with possible ramifications of Intermet's news, Starnes said.
"Hopefully, they'll be able to get reorganized and stay in business," Starnes said.
The New River Foundry's products include rear axle and differential carriers, steering knuckles and brake calipers -- all ductile iron automotive components, Cole said.
The company's products are used "in nearly every leading vehicle manufactured in North America," Intermet said.
In January, Intermet announced it would close a manufacturing plant in Pulaski, Tenn., a move it attributed to forecast drops in vehicle production. That plant employed about 105 people. For the year ending July 31, Intermet said its sales from operations totaled about $310 million. Previous year sales were not disclosed.
Intermet previously filed for Chapter 11 protection in September 2004 and emerged from bankruptcy in November 2005. At the time, it had more than 5,000 employees worldwide. Companywide employment is now 1,700.
Cole described the two Chapter 11 filings as separate actions by two different companies. Intermet is now a private company, he said, with a new management team.
In a Chapter 11 bankruptcy, if the court approves, a debtor retains ownership of the company and control of operations while reorganizing the business. Debtors and creditors have flexibility to work together.
Other suppliers have been hit hard, too.
Rhonda Glover of the Detroit-based National Association of Black Automotive Suppliers said association members "are surviving."
"It is a tough time but suppliers are realizing they need to diversify their portfolios," Glover said.
She said there are opportunities to provide products for other industries, including aerospace and medical.
For more information about Intermet's court filings go to www.intermet.com/latest/index.html.
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