Red Oak, Iowa is facing an economic blow as its Romech plant plans to close its doors. That will eliminate 400 jobs.
Romech is a division of Magna International's Intier Automotive Seating group. The company announced today that it's consolidating production with other Intier plants and will close the plant in Red Oak by the end of 2006.
The company says full production will continue over the next few months, with workforce reductions beginning in the second quarter of next year.
Romech cites the "difficult economic conditions" facing the auto industry due to reduced domestic production and customers demands.
Romech makes automotive seat mechanisms.
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