Truck parts maker Core Molding Technologies Inc. is moving 90 jobs to Mexico from its Columbus headquarters in the coming months as its largest customer makes a production shift of its own.
Core Molding (AMEX:CMT) said the jobs will be added at its Matamoros, Mexico, facility by the end of June as Navistar Inc., which supplied 57 percent of Core Molding’s 2008 revenue, is also shifting some of its production to an assembly plant it has in Escobedo, Mexico.
Core’s job relocation is part of an addendum to a supplier agreement it has with Navistar that runs through 2013. Under the terms, Navistar agrees to continuing buying from Core Molding all of its original equipment and service requirements attached to specified fiberglass reinforced products.
In a statement, President and CEO Kevin Barnett said the relocation of local jobs is unavoidable.
“This move allows us to better serve Navistar by reducing logistical costs associated with our products and improves our overall competitiveness,” he said. “We are also sensitive to the impact of this move on our Columbus work force who have contributed so much to our company, however this move could not be avoided due to Navistar’s production changes.”
The jobs transfers should be completed by June and cost Core approximately $4 million for transfer, startup and capital expenses tied to the move.
Core makes sheet molding composites and molds fiberglass-reinforced plastics for trucks, automobiles and personal watercraft at plants in Columbus, Batavia, Gaffney, S.C., and its Mexico plant. The company employs 933 overall, with 562 of them in the U.S.
The company in 2008 earned $5.64 million on $116.7 million in revenue.
Source:bizjournals.com/
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