UPDATE: Manufacturer relocating production to Mexico
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
New Hampshire-based Proterial Cable America Inc. is providing more information on its decision to lay off 109 employees in New Albany. The manufacturer told IIB on Tuesday it is ending production in Indiana and expanding its manufacturing operations in Mexico.
PCA, which makes automotive electric and hydraulic suspension and brake systems, told the Indiana Department of Workforce Development earlier this month that it was making the layoffs but did not state why.
The company said the relocation is part of a strategic plan to streamline production processes, reduce costs and “improve competitiveness in the global marketplace.” The decision was driven by several factors, including “unprecedented challenges” caused by the pandemic that led to global supply chain disruptions.
“These disruptions have significantly impacted our ability to source raw materials and essential components required for the manufacturing processes,” the company said. “Despite our best efforts to mitigate these issues, the continued uncertainties and limitations have made it increasingly difficult to sustain operations in the U.S. in a cost-effective manner, while meeting customer demands.”
The affected employees, who are not represented by a union, will be let go in waves beginning Nov. 17 and continuing through May 31, 2024.
PCA, previously known as Hitachi Cable America, said the workers were notified of the layoffs in April in a town-hall meeting at the facility.
“We understand the importance of open communication and wanted to ensure that each employee had the opportunity to hear directly from us about this difficult decision,” PCA President Tom Artinian said in written remarks. “This decision was not made lightly, and we are acutely aware of the profound impact it has on our valued employees and the local community. We remain committed to treating all affected employees with the utmost respect, dignity, and transparency throughout this process.”
The company said it will provide job placement assistance and severance packages for the affected workers. A job fair with local employers will also be held this fall to help the workers transition to new employment.
PCA has operated two manufacturing facilities in Queretaro, Mexico since 1994. The Pensacola News Journal reported last year the company was moving its Pensacola, Florida operations to Mexico and laying off more than 200 workers.
The plant at 5300 Grant Line Road in New Albany has been operated by PCA since 1986. The company said it is exploring all options for the 33-acre facility.