Employees put massive trucks together in the large wrecker assembly shop at the Ooltewah branch of Miller Industries Inc.Miller Industries is cutting ties with the Delavan brand after losing $1.3 million on a joint venture to build large, over-the-road trailers at Miller Industries’ Greeneville, Tenn., plant.
Miller is selling its stake in the venture to its partner on the deal, Lohr Group, a private French company that specializes in transportation, less than a year after the Chattanooga tow truck equipment manufacturer spent $1.8 million and added 23 jobs to start producing the trailers for the North America market.
The sale is expected to close March 31.
“Although we incurred losses in 2013 from the joint venture that will extend into the first quarter of 2014, it did not and will not have a material impact on the core business of the company,” co-CEO Jeff Badgley said in a statement.
Miller Industries will wind down production of Delavan products at its Greeneville plant in the first quarter and expects to lose another $500,000 on the venture. Miller’s chief financial officer and executive vice president Vince Mish said the company is not laying off any full-time employees.