Norway-based Kongsberg Automotive to consolidate production at Tamaulipas facility
Norway-based automotive parts manufacturer Kongsberg Automotive announced plans to consolidate operations from its Fluid Transfer Systems (FTS) division in a new facility in Mexico. The production lines and equipment will come from a plant in Easley, South Carolina, which will be closed during the first quarter of 2018.
The measure is part of a plan that also implies closing down 5 more plants, mainly within the Powertrain and Chassis products segment in Europe.
The Easley facility manufactures and supplies product for the FTS business unit; it provides quality engineered hose and tube assemblies for the world’s top makers of commercial and industrial vehicles.
“A very competitive market in the area of the Easley products has lead this plant to an uncompetitive position. This means there is a strong need to become more efficient and reduce costs, which can only be achieved by relocating the Easley manufacturing operations,” said the company in a press release. There are 97 employees at the Easley facility, who will be affected by the closure.
Konsberg operates manufacturing plants in the cities of Nuevo Laredo, Matamoros and Reynosa, in the Northern state of Tamaulipas. From all three locations, the most likely to receive the Easley assets is Nuevo Laredo, which is a three-building complex where the company already manufactures products from the FTS division.