ERJ staff report (TB)
New York -- Hyosung America Inc. said it will close operations at its steel cord plant in Scottsburg, Indiana, eliminating about 130 jobs.
The company, an affiliate of South Korea's Hyosung Corp., said harsh economic conditions and increasing competition led to the decision, which will take effect no later than Dec. 31.
A Hyosung spokesman said the facility had been operating at a loss for the last two years and despite efforts to boost performance, the company ran out of options. The plant makes steel cord for tyres, and the company had a 10-year supply agreement with Michelin North America Inc., from which it purchased the facility in 2005.Â
No word on the affect of the closing on that contract was provided, but Michelin announced two weeks ago that it plans to expand steel cord production at its Tuscaloosa, Alabama, plant and make it the main supplier of the material to its tyre factories in North America.
Hyosung has given affected employees and appropriate officials a 60-day notice to allow staff members to access training and other assistance.
The plant employed 220 when Hyosung bought it three years ago.
From Rubber & Plastics News (A Crain publication)
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