McClain Industries Reorganizing, Cutting Noncore Businesses

Sterling Heights, Mich. -- McClain Industries has hired Grant Thornton, Southfield, Mich., to help sell the company's noncore businesses. The cuts reflect the company's efforts to reorganize after experiencing challenges during the past few years. At the end of fiscal 2002, the company's net sales were down 20 percent from the previous year, and the company delisted from the Nasdaq small cap market in December 2002. Coupled with the resignation of Ronald Biggs, Walter Kirchberger and Raymond Elliott from McClain's board of directors, the company's financial status is driving the company to concentrate efforts primarily on the production of bins, compactors and lifters. During this next year, the company plans to eliminate approximately 150 jobs.