Navistar International is selling its Melrose Park, Ill., facility to a developer, who will turn it into an industrial busines park.
The truck maker says half its employees at the facility will be transferred elsewhere, and operations there will wind down by November 2021.
“Given changes at Navistar and in the industry, it no longer makes sense to maintain a facility of that size,” said Phil Christman, president of operations for Navistar. “Further investment in the Melrose Park property would divert substantial resources away from investments in new technologies and products. While this decision is difficult, it is necessary to best position Navistar for the future and to unlock economic growth for the Melrose Park community.”
Navistar no longer builds engines at the facility and doesn’t have the same requirements for testing there, due to reductions in engine manufacturing and a growing interest in alternative fuel drivetrains.
“The hardest decision we can make is to part with dedicated colleagues at a property that has been integral to our company’s history,” said Persio Lisboa, Navistar president and CEO. “We’re confident the sale of the Melrose Park property will spur a sizeable reinvestment in the community, resulting in new jobs and economic opportunity.”