Miller Industries expects losses from new product line
A new product line and plant expansion have turned sour for Miller Industries.
The Ooltewah towing equipment manufacturer expects to lose more than $1 million during the fourth quarter this year on a joint venture to produce large, over-the-road trailers under the Delavan brand.
Miller Industries spent $1.8 million to add the product line to its Greeneville, TN, plant in August. The line of trailers added 58 jobs to the plant. But now Miller is cutting back on the unprofitable Delavan line, which is a joint venture between Miller Industries and the Lohr Group, a private French transportation company.
"Operations related to the Delavan joint venture have been reduced in an effort to minimize future losses," the company said in a release. "[Miller Industries] will continue to evaluate the viability of the joint venture and to focus on additional steps to reduce its future losses, including consideration of whether each of the joint venture's products can be produced profitably."
Read more from our news partners at the Chattanooga Times Free Press.