Starke County's largest industrial company needs buyer to stay open

by Sarah Rice (srice@wsbt.com)

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MPI in Starke County, which makes transmission plates for cars

MPI in Starke County, which makes transmission plates for cars, is searching for a buyer after its parent company filed for Chapter 11. (WSBT photo)

By WSBT News1

Story Created: Dec 17, 2008 at 5:13 PM EST

Story Updated: Dec 22, 2008 at 12:39 AM EST

STARKE COUNTY — Problems in the auto industry claimed another local company. MPI in Starke County makes transmission plates for cars. Workers recently learned the plant will close unless another company offers to buy it.

MPI's parent company, Precision Parts International based out of Rochester Hills, Mich., filed for Chapter 11 as it begins to shut down operations. The company's CEO says the decision was "unavoidable." But local county leaders are already taking action to keep MPI open.

Finding a buyer isn't a matter of "if."

"It is a must," said Starke County Development Foundation Executive Director Charles Weaver.

MPI is Starke County's largest industrial company, employing more than 300 workers. The company plays a crucial role in the community and the U.S. auto industry — making transmission parts for cars.

"Every Chrysler product, for instance, has plates in them from this facility in Knox, Indiana. They also sell to every foreign and domestic automaker producing cars in North America," said Weaver.

But the struggling auto industry has forced MPI's parent company, PPI, to file bankruptcy. In a statement, the company's CEO said, "The current depressed conditions in the domestic auto industry, along with the continued tightening of credit markets created insurmountable hurdles that could not be overcome."

"I felt like everybody else that we were going to lose our jobs and didn't know what we were going to do. Everybody is pretty upset over it," said MPI employee Susan Rice.

Local leaders like Charles Weaver from the Starke County Development Foundation aren't wasting any time. They've already been in contact with several companies who might be interested in buying MPI.

"We've had positive feedback with at least a willingness to look at it from two of those companies," said Weaver.

Weaver doesn't know what will come out of this, but he says one thing is clear.

"The jobs that are there and the people that work there are so critical to this community, we are not going to give up," said Weaver.

And Rice isn't either.

"We're all praying and hoping that the buyers come through and everything works out," said Rice.

Leaders says if the right buyer comes along, the company could expand, adding more jobs. That's because MPI offers advanced technology when it comes to manufacturing transmission parts.

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