By PYC Bearings
©2004-2008
A bearings manufacturing plant in Caldwell that employs 332 people will close by the end of 2009, according to a company statement released last Friday.
MAHLE Engine Components USA Inc. announced the closure is part of a ¡°strategic restructuring of its North America bearings manufacturing business¡± and would be done by Dec. 31, 2009.
¡°This will be a gradual process, so not all of the 332 employees will be working until Dec. 31, 2009,¡± said Jeff Trent, marketing manager with MAHLE Industries in Morristown, Tenn.¡°The closure will be worked out in a structured manner,¡± he said, noting the company has notified the United Steelworkers, which represents union employees, about the closing and will be working with the union throughout the shutdown period.
Trent said while reaction to the announcement has not been positive, some workers have expressed appreciation for the way the issue is being handled.He said the company wanted to give employees as much advance notice as possible.
Dan Moody, vice president of the Product Group Bearings division, said the decision to close the Caldwell plant, 28 miles north of Marietta via Interstate 77, was difficult.¡°We regret the impact upon our affected employees,¡± he said in a statement issued Friday. ¡°However, this is a necessary strategic business decision that will realign our investment and capacity to enhance the long-term competitiveness and performance of our bearings business.¡±
Trent said MAHLE owns several other bearings plants.¡°The Caldwell facility is not MAHLE¡¯s only bearing manufacturer, and that plant has been under-utilized,¡± he said.
Friday¡¯s announcement could still be good news in the Mid-Ohio Valley, because the company plans to move the raw materials strip production operations to MAHLE¡¯s McConnelsville facility, 32 miles north of Marietta via Ohio 60. Parts for diesel applications will be moved to the company¡¯s Atlantic, Iowa, site.Other operations currently at the Caldwell facility will also eventually be transferred in coming months.
Trent said MAHLE purchased the Caldwell plant from Dana Corp. in March 2007.¡°Dana had announced intentions to sell off its engine products group in September 2005, but in March 2006 Dana filed for Chapter 11 bankruptcy.¡°We had to wait as the purchase was delayed by the bankruptcy proceedings,¡± he explained.
MAHLE Engine Components USA Inc., is a subsidiary of the MAHLE Group, one of the 30 largest automotive suppliers worldwide.
MAHLE is among the top three suppliers for piston systems, cylinder components, valve train systems, air management systems and liquid management systems.The company employs more than 40,000 workers in 110 production plants and seven research and development centers.