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January 15, 2021 5:15 PM, EST

Navistar to Close 125-Acre Melrose Park, Ill., Facility

Navistar's Melrose Park, Ill., facilityNavistar's facility in Melrose Park, Ill., in the past was used to manufacture Navistar’s 9- and 10-liter N-Series engines, mainly for Classes 6 and 7 trucks and buses. (David Wilson — Flickr)

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Navistar International Corp. announced it approved a plan to sell its facility in Melrose Park, Ill. It ceased all operations in November at the 125-acre site that has been used most recently as a technical center and for engine testing.

Earlier, it was used to manufacture Navistar’s 9- and 10-liter N-Series engines, mainly for Classes 6 and 7 trucks and buses.

“Due to a reduction in the company’s overall engine manufacturing, the lack of engine manufacturing at the Melrose Park Facility, and the trucking industry’s increasing interest in alternative fuel drivetrains, a property the size of the Melrose Park Facility is not necessary for the remaining engine testing and administrative functions currently performed,” the Lisle, Ill.-based company reported in a filing.

The company reported it expects to transfer half of its current workforce of 500 employees to the company’s other facilities.

Persio Lisboa

Lisboa

“The hardest decision we can make is to part with dedicated colleagues at a property that has been integral to our company’s history,” Navistar CEO Persio Lisboa said.

Navistar expects to incur pretax charges of $85 million, of which, $75 million are expected to be incurred in fiscal 2021, with the remainder being incurred in fiscal 2022.

The undisclosed buyer of the property intends to develop it into an industrial park, according to Navistar.

Navistar anticipates the site’s comprehensive redevelopment will more than double property tax revenue for local governments compared with current levels, and that the redeveloped site will lead to substantially more local jobs than Navistar’s current operations provide. — Transport Topics

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