Haldex Dissolves 155 Jobs as Factory in Kansas Closes

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Researched by Industrial Info Resources (Sugar Land, Texas)--Haldex (OTC:HLDXF) (Rockford, Illinois), which manufactures and distributes heavy-duty brake and suspension components for trucks, trailers and buses, recently announced the closure of the company's Iola, Kansas, commercial vehicle division facility, which has been operating since 1973. As a result of the closure, 155 employees are expected to lose their jobs.

Production at the facility will stop by the end of 2010. Haldex promises to work with affected Iola employees, offering severance pay, benefits continuation and outplacement services, as well as pursue available federal and state programs that benefit employees who lose their jobs. The plant closure will cost the Iola community approximately $75,000 in property tax revenue and utility expenditures estimated at $190,000.

Company officials stated production at the Iola plant will relocate to the company's facility in Monterrey, Mexico. The Monterrey plant has been the primary brake actuator production facility for Haldex since 2002, and recently expanded production by moving into a new 200,000-square-foot facility. The production of brake cylinders was moved from Iola to Monterey in 2007. Haldex suggests that investing in one site increases competitive strength and utilizes capital and human resources more effectively. The consolidation is expected to generate annual savings of $6 million.

Haldex is divided into three divisions: Commercial Vehicle Systems, Hydraulic Systems and Traction Systems.

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