ArvinMeritor Inc. said today, May 13, that it will idle its facility in Carrollton, Ky. The company said it met with union officials of the United Auto Workers Local 1813 and employees this morning to announce the closure plans, which will impact all 129 employees. The company said it plans to move its wheel-end assembly operations to other facilities in Kentucky and Ohio and to outsource its machining operations; the casting center operation also will be outsourced.
“Although the employees in Carrollton have demonstrated a strong commitment to performance and quality, the continued weakness in the global markets has driven the company to aggressively reduce costs to lower its break-even point,” said Wayne Watson, general manager of North American operations for ArvinMeritor, based in Troy, Mich. “Closing the Carrollton operation is another necessary step toward improving the company’s overall cost structure.”
The company said its management team will discuss the effects of the decision with union officials this week. ArvinMeritor anticipates the phased closure to be complete by the end of this year.