Tuesday, Nov. 03, 2009

Deal will save jobs at Continental

Illinois-based Navistar Inc. announced Monday it has acquired certain assets of Continental Diesel Systems, which had planned to close two facilities in Richland County that employ 440 people.

A spokesman for Navistar, a holding company best known for building heavy trucks under the International brand, said he didn't know how many jobs would be saved. An announcement would be coming soon, he added.

Continental announced in December that it was closing plants in Blythewood and Columbia, and consolidating its operations in Virginia. At the time, Continental said it would shutter the Midlands operations in 12 to 18 months.

With the acquisition, Navistar said, it will rename Continental as Pure Power Technologies Inc.

The company will manufacture key fuel injection components for Navistar's MaxxForce diesel engines and establish a research and development facility.

It's unclear what role the Richland County plants will play. As of December, the Blythewood plant employed 360, making diesel fuel injectors for heavy trucks, while about 80 worked at a Columbia engineering facility.

But the acquisition of the Continental facilities "prevents their closing," Navistar said in a news release. "Navistar and Continental will be working on a product transition plan between now and January to assure the needs of both companies are met."

S.C. Commerce Secretary Joe Taylor said in a statement that Monday's report "is another strong sign that our business-friendly climate, skilled work force and exceptional market access continue to attract new investors to our state."

The bottom line for the local community, Richland County Chairman Paul Livingston said in a statement, is that jobs will be saved. "Today we are in a global competition to find and save jobs. We certainly recognize the possibility for future growth and development."

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