Harley-Davidson to buy Australian wheel supplier

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NEW YORK, Aug 28 (Reuters) - Harley-Davidson Inc. (HOG.N: Quote, Profile, Research) said on Monday it agreed to purchase most of the assets of Castalloy, its Australian supplier of cast motorcycle wheels and hubs.

Financial terms were not announced. Harley-Davidson said it is establishing an entity called New Castalloy as a wholly owned manufacturing operation that is expected to employ about 300 people at the site in North Plympton, Adelaide.

Harley-Davidson said it expects to close the transaction toward the end of September.

[Outbackjack]

It will be interesting to draw comparisons in attitudes between the Harley take over and the Coles take over.....

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Workers at the components plant Ion Automotive at North Plympton, Adelaide, have been celebrating the company's takeover.

The future of the aluminium casting foundry has been secured with the announcement of its new owner, US company Harley Davidson.

Ion Automotive went into voluntary administration in December 2004.

The company will now trade as New Cast Alloy, a wholly-owned subsidiary of Harley Davidson.

Managing director Don Gogan says it reinforces an association that has been developed over two decades.

"To me this is just an example of continuing our future between the two companies," he said.

Wayne Hanson from the Australian Workers Union says its a fitting endorsement.

"They discovered that for quality and continuity of supply only South Australia had the solution," he said.

The company will employ 317 workers at the 4.8 hectare site at North Plympton.

South Australian Premier Mike Rann says there is no problem with the Adelaide firm going into foreign ownership.

"If we had allowed this to go under, what would have happened, is not only the jobs have been lost, not only $65 million worth of exports, but also would then have affected 100 other suppliers here in South Australia, there would have been collateral damage, so this has been worth the effort," he said.

The national secretary of the Australian Workers Union, Bill Shorten, says the sale brings an end to months of anxiety for staff.

"I have to say that in the last 21 months it's been a journey and just the sense of relief, its almost like watching the steam come off the after rain on a bitumen floor just the sense pressure being relieved is fantastic for these people," he said.

[HOON69]

congrats to em but plz explain why the workers and company allowed ti to go down hill that fast in the first place?

[DJM83]

yeah they are still having a few trouboles at the local plant here in albury all is still not that good. Congrats to the workers

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Originally Posted by HOON69

congrats to em but plz explain why the workers and company allowed ti to go down hill that fast in the first place?

It's automotive manufacturing... about as fickle, dynamic and cruel as an industry gets, with the exception of running an airline.

Kicking along nicely one day... clutching at straws the next.

Overall a good result, would be nice to see profits remain here in SA but much prefer to see 300 fewer people trawling the job ads.

[xbgs351]

Originally Posted by TE50 056

yeah they are still having a few trouboles at the local plant here in albury all is still not that good. Congrats to the workers

I thought a buyer had been arranged.