Archive for the ‘Caparo’ Category

Caparo All Set To Close 2 Of Their Novi plants

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An auto supplier of Metro Detroit some three years back had opined that it would invest some $10.5 million and for which for $1 million was approved in state tax credits. He also said that it will permanently close both of its Novi plants sometime this month.

Novi-based Caparo Vehicle Components Inc. has stated that it was in the process of selling the company to an unnamed buyer, who recently backed out of a sale agreement due to a “lack of commitment” by the customers.

Caparo expects to close as early as Aug. 17. And because of this closure some 270 employees will be affected.

The company this week filed a Worker Adjustment and Retraining Notification with the state’s Workforce Development Agency.

It was in December 2009 that Caparo said that it would be investing $10.5 million to remain in Novi and for which it was also awarded $1 million in tax credits over a five year period from the Michigan Economic Growth Authority. It was because of the tax credit that Caparo was able to retain 398 total jobs, including 117 direct jobs at Caparo.

The Michigan Economic Development Corp. said that Caparo collected on its tax credit in 2010, and it is possible the company qualified to collect in 2011, though the requisite paperwork was never filed with the state.

The tax credits did not cost the state money; a representative from MEDC said on Friday that the company will not have to repay the value of the tax credits.

Caparo is into the production of metal stampings, welded assemblies and other components for original equipment manufacturers and major auto suppliers. The division of London-based Caparo PLC has two manufacturing locations in Novi and another in San Luis Potosi, Mexico.

The head office of views Caparo Vehicle Components as its base for expansion of its outlets in the U.S. and Mexican auto markets, according to the Caparo PLC website.

A company spokeswoman said Friday afternoon she declined to comment until she had confirmed reposts.

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