CHICAGO, Sept. 29 — Navistar International Corporation (NYSE: NAV), producer of International® brand trucks, school buses and diesel engines, today announced that it will move its world headquarters into a new six-story office building in west suburban Warrenville.
The new world headquarters building is located in Cantera, a 650-acre, mixed use development. Construction on the 260,000-square foot, six-story building began in March 1999 and will be ready for initial occupancy in December.
Pamela J. Hamilton, senior vice president, human resources and administration said moving world headquarters to the Cantera site will bring greater efficiency to company operations by allowing employees to work more closely together, in teams, at the same facility.
According to Hamilton, the headquarters consolidation was made possible as the result of the previously announced elimination of 1,100 white collar and contract positions. The downsizing, which included reductions at all company locations, was announced in August in order to better allocate resources as the company prepares for the launch of a new high performance medium truck early next year. Approximately 250 positions were eliminated in the Chicago area.
“By co-locating many of our Chicago area employees into a single facility, we will be able to realize efficiencies and teamwork never before possible,” Hamilton said. “Additional savings will be achieved through the subleasing of our current world headquarters space.”
When initially announced, plans called for the company’s purchasing, parts and information technology operations to move from other suburban locations. Initial occupancy will be by the company’s purchasing and parts operations. Corporate, financial and truck group operations are scheduled to move in June 2001, followed by information technology operations in the fall of 2001.
When the consolidation is complete, approximately 1,100 employees of International Truck and Engine Corporation, Navistar’s operating company, will be located at Cantera. Engine operations will continue to be based in Melrose Park while the company’s finance group will remain in Rolling Meadows.
Navistar’s world headquarters has been located at NBC Tower, 455 N. Cityfront Plaza Drive since the tower opened in 1989. The company has been headquartered in Chicago since its founding in 1902. Hamilton emphasized that by staying in the Chicago region, the company will be able to continue to maintain close ties to the City of Chicago.
For example, Hamilton said, in addition to supporting community civic organizations, the company will continue its partnership with the Chicago Public Schools (CPS) and Chicago Vocational Career Academy preparing high- school students for careers in truck maintenance. The joint venture trains approximately 80 students a year through the Medium/Heavy Truck Technician and Diesel Training Program. The first of its kind in Illinois, the program features two state-of-the-art-training laboratories equipped with the latest tools, truck components, diesel engines and electronic wiring aids.
In addition to selling medium trucks, school buses, heavy trucks, severe service vehicles, mid-range diesel engines, parts and service under the International? brand, International Truck and Engine Corporation also is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Through its finance subsidiary, the company also provides financing and liability insurance for its dealers and customers. Navistar reported 1999 sales and revenues of $8.6 billion. Additional information can be found on the company’s web site at www.nav-international.com . SOURCE Navistar International Corporation
