Motoring Giants Help Carry National Forge
The Age
Monday November 11, 2002
Holden and Ford and two big car-parts makers have stepped in to underwrite temporarily the automotive parts operations of National Forge, which is in receivership.
The parts makers, Dana and Ion, buy forgings and build them into rear axle and differential systems sold to the two car makers.
It is believed the intervention by the automotive companies is intended to last about two weeks, or until a buyer can be found for National Forge.
There are two companies interested in buying the group, which holds a unique position in the Australian forging industry. However, earlier estimates of $4 million from asset sales fall as much as $11 million short of the $15 million in accumulated entitlements owed to the company's 360 workers.
National Forge is a leading manufacturer of forged titanium products, supplying fan blades for power station turbines and golf club heads.
National Forge went into receivership after the US-based GE Power Systems Aerofoils cancelled the bulk of its turbine blade order for the year as construction of power stations slumped in the wake of the Enron collapse.
The receivers were appointed by National Forge's main creditor, GE Capital Finance, another arm of the sprawling GE group.
Dana is the leading supplier of rear axle components to Holden and Ford, the only makers of rear-wheel-drive cars in the country, while Ion's BTRA subsidiary makes differentials for rear-wheel-drive cars, as well as automatic transmissions.
Any disruption to the automotive supply chains quickly brings the assembly lines to a halt.
It is a sensitive time for both car makers as they have just released new models of the Commodore and Falcon.
© 2002 The Age