As part of its evaluation and cost-control methods, Navistar International Corp. has announced it will close its Garland Truck Plant in Garland, TX. The facility will shut down in the first half of 2013.

“Closing a facility is always difficult because of its impact on the many great people who've been part of our company,” said Troy Clarke, Navistar president & COO. “But the fact is that Navistar has too much manufacturing capacity in North America and we must take quick action to improve our business and position the company for long-term success.”

There are currently about 900 employees at the Garland plant. Closing the facility is expected to save Navistar between $25 and $35 million annually. The Garland plant produces Navistar's severe service vehicles.

“We understand that these decisions affect employees and the community,” Clarke added. “We will treat people with respect and provide support to help them with their transitions.”

Vehicle production at the Garland facility will be absorbed by other North American plants, Navistar said, beginning in January 2013.

The company will record a fourth-quarter 2012 charge, primarily for employee separation benefits, which is not expected to exceed $10 million on a pre-tax basis.  As the closure plan is implemented during the 2013 fiscal year, the company expects to record certain pre-tax charges, primarily related to accelerated depreciation and other related items, ranging from $30-$50 million dependent upon determination of fair value.