September 11, 2006 1:30 PM, EDT

Dana Corp. to Sell Trailer-Axle Plants to Hendrickson USA

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ankrupt auto parts supplier Dana Corp. will sell trailer-axle plants in the United States, Canada and China to Boler Inc. subsidiary Hendrickson USA, Bloomberg reported Monday.

The sale, valued at $38 million, is tied to production cuts by Ford Motor Co., Dana Corp.’s biggest customer, Bloomberg said.

As part of the sale, Hendrickson will assume control of Dana’s Lugoff, S.C., plant, while about 90 jobs at the parts suppliers’ Barrie, Ontario, plant will be eliminated.

Employees at Dana’s plant in Wuxi, China, will be reassigned to other product lines, according to Bloomberg.

Hendrickson currently manufactures such commercial-truck parts as bumpers, axles and suspension systems.