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Detroit Tool Metal Products To Consolidate Locations
12th June, 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 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.

"A centralized company with new engineering design capabilities will provide better quality and delivery and ultimately a more competitive cost structure for DTMP," he continued. "We have always believed that what sets us apart is our ability to bring it all together. This is true now more than ever and it is something that few other companies in this business can offer."

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. DTMP will also continue producing finished goods inventory for its customers to assure that its customers continue to receive product and the excellent customer service that has long been a hallmark of DTMP.

Detroit Tool Metal Products (DTMP) is a leader in full-service precision metal stamping and fabrication for a broad range of markets that include the appliance, agriculture, construction, consumer products, class 8 trucking, heavy equipment, pharmaceutical and recreational products. The company is located at 949 Bethel Road in Lebanon, MO.

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Tags:  Fabrication - Equipment

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