Bus Manufacturer Details Indiana Layoffs
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A manufacturer of single and double decker buses headquartered in the United Kingdom has notified the state of layoffs related to the previously-announced closure of two northern Indiana facilities. In separate WARN notices, Alexander Dennis Inc. says it will permanently close its locations in Nappanee and Peru, affecting nearly 200 jobs.
In July, ADI parent NFI Group Inc. said it would begin integrating ADI’s manufacturing locations in North America into its existing facilities. In addition to Nappanee and Peru, the ADI plant in Vaughan, Ontario in Canada was also set to close.
The Indiana locations are responsible for the manufacturing of sub-assemblies and final assembly of the Enviro500 double deck bus and Enviro200 midi bus for the North American market.
“After a thorough review of our North American manufacturing locations, we have determined that rationalizing our ADI North American manufacturing locations is the required approach moving forward,” NFI Chief Executive Officer Paul Soubry said in July. “As it is never easy to close locations and impact individuals’ careers, this important decision was not taken lightly. This integration, however, continues us on the necessary path for NFI as we execute our plan of transforming our organization into a more cost efficient, integrated operating business.”
The company says it will begin laying off employees in Nappanee and Peru on February 4 and continuing through May 6. The affected employees are not represented by a labor union and there are no bumping rights.
A spokesperson for ADI tells Inside INdiana Business all affected employees have been offered retention payments to remain on staff until the closures are complete and will be provided re-employment assistance.
Additionally, some employees are expected to be redeployed to ADI’s sister company, ARBOC Specialty Vehicles, in Middlebury.