PLYMOUTH, Mich., July 7 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) said today it will close its operations in Jackson, Michigan
before the end of 1997.
    The company said it has been conducting an ongoing review of its overall
manufacturing operations, and cited over capacity and consolidation of
operations as the reason for this action.  Production will be moved to other
locations and certain property, plant and equipment will be idled and disposed
of.
    Simpson said it has made the announcement to officials of Local 1515 of
the International Association of Machinists and Aerospace Workers Union which
represents the production and maintenance employees at the plant, followed by
an announcement to the entire workforce.  About 135 employees will be
affected.  Simpson said it expects an orderly shutdown and that it will be
negotiating the effects of the closing with the union.
    Simpson said pre-tax charges associated with the closing are expected to
be about $4 million which will be included in the company's financial results
for the third quarter ending September 30, 1997.
    Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the automotive and medium and heavy duty engine
markets.  Simpson's products are focused in four groups: noise, vibration and
harshness; wheel-end and suspension; modular engine assemblies; and high-
precision machined components.  Simpson's manufacturing units are located in
the United States, Canada, Mexico and Brazil.  European and Asian operations
are located in England, France, Spain and Korea.

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