PLYMOUTH, Mich., Sept. 3 /PRNewswire/ -- Simpson Industries, Inc.
(Nasdaq: SMPS) announced today that it will close its operation in Gladwin,
Michigan by the middle of 1998 and transfer the business to other Simpson
locations.  The plant manufactures noise and vibration products for automotive
engines.
    The company said that this action is a result of its continuing review of
overall manufacturing operations to eliminate excess and redundant capacity.
The company also said that it has no plans to close additional plants, but
will continue to assess our operations' fit with the overall strategies of the
business as part of our ongoing efforts to exceed customer and shareholder
expectations.
    Simpson said it has made the announcement to officials of Local 7603 of
the United Paperworkers' International Union which represents the production
and maintenance employees at the plant, followed by an announcement to the
entire workforce.  About 170 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 $4.5 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.
    To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 - extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com./

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