American Racing Equipment, one of the largest employers in Gallatin County, Ky., is shutting its plant in Warsaw, eliminating 205 jobs.

        The company, a unit of Noranda Inc., makes original-equipment aluminum wheels for the auto industry. It notified employees Monday that the 150,000-square-foot plant would be closed by year-end.

        Paul Goyette, plant manager, said the plant, which opened in 1995, was operating at only 23 percent of capacity in the face of the auto industry downturn and cutbacks at DaimlerChrysler AG, the plant's major customer.

        The plant supplied aluminum wheels for the Chrysler Grand Cherokee, but DaimlerChrysler recently had backed off plans to buy other wheels from the plant, Mr. Goyette said.

        He said the company would help employees trying to find jobs elsewhere.

        American Racing said production from the Warsaw plant would be transferred to other plants in Rancho Dominguez, Calif.; Gardena, Calif.; and Queretaro, Mexico.

        The company, created in 1956, announced recently it would focus on the after-market rather than original equipment markets.

        Kelly Warnick, editor of the Gallatin County News, said several employees he talked with weren't surprised by the shutdown.

        “They were shocked but had kind of expected it,” he said, noting the plant's backlog had declined recently.

        Toronto-based Noranda, an international natural resources supplier, Tuesday said it had a third-quarter loss and was cutting 550 jobs as copper prices fell. The company also said it would take a $20 million charge in the fourth quarter.

        Noranda lost $38.1 million,compared with net income of $44 million a year earlier, the company said. Revenue fell 12 percent.

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