Navistar to Sell Melrose Park Campus to Developer
Navistar International Corporation plans to sell its Melrose Park in Illinois facility to a developer who has an actionable plan to redevelop
Navistar International Corporation plans to sell its Melrose Park in Illinois facility to a developer who has an actionable plan to redevelop the parcel into a state-of-the-art industrial business park. Navistar estimates that half of the facility’s current workforce will be transferred to other facilities. The company expects to cease operations at the Melrose Park campus by November 2021.
The property sale is part of Navistar’s continued adaptation to rapid changes in the industry, as well as its own operations. Engine manufacturing is no longer present at the facility, and Navistar’s need for engine testing has significantly decreased due to reductions in the company’s manufacturing of engines and the trucking industry’s increasing interest in alternative fuel drivetrains.
Navistar believes that the site’s comprehensive redevelopment will more than double property tax revenue for local governments from current levels, and that the redeveloped site will lead to substantially more local jobs than Navistar’s current operations provide.
The company will take an approximate USD 85 million charge as a result of the exit from the facility, including approximately USD 40 million of cash-related charges.
Navistar expects the sale agreement and subsequent divesture of the Melrose Park property to be completed by the end of 2021.