Delphi Corp., once among the world's biggest makers of automotive batteries, will leave the business after selling a plant to Johnson Controls Inc. as part of a move to focus on other auto parts.
Auto battery production is one of about 10 product lines Delphi is leaving over the next year. The Troy, Mich.-based company plans to focus on niche and high-tech products after it emerges from Chapter 11 protection by mid-2007 and attempts to be competitive as a parts maker.
Delphi sold its New Brunswick, N.J., plant to Johnson Controls effective Aug. 1, according to court documents. Delphi's remaining plant in Fitzgerald, Ga., will continue supplying Johnson Controls until an undisclosed date in 2007.
Delphi closed its only California facility, a battery plant in Anaheim that employed 300, early last year.
Johnson Controls will pay $1 for the New Brunswick plant and $1.7 million for the plant's inventory. It also will reimburse Delphi $12.5 million for the cost of an attrition plan to cut the workforce to 100 from 300.