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French auto parts supplier Faurecia will close on August 30 one of its two plants in Ramos Arizpe, Coahuila, which belongs to its automotive seating division, and will transfer those operations to a facility in Puebla.

The company announced its relocation plans to its employees on July 27. According to local press reports, some of the 400 workers were offered work at the Puebla plant or at the other location of Ramos Arizpe, where the company manufactures interiors. The rest of the employees began receiving their settlement in accordance to law starting on August 2.

“The decision has been widely analyzed and is solely and exclusively due to a geographical restructuring of the company's operations in the country, which will allow it to be more efficient,” the company said in a statement.

Faurecia has another 14 plants in the states of Sonora, Coahuila, Guanajuato, Puebla, San Luis Potosi and Queretaro, as well as a shared services center and two research and development centers. All those locations together employ more than 10,000 people and continue to operate normally.

In the last two years, Faurecia has invested more than US$ 200 million in Mexico for the opening of three plants that service the main automotive manufacturers in the world. One of these plants was inaugurated last March in San Jose Iturbide, Guanajuato, where the company invested US$ 86.2 million to manufacture emission control systems.


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