CADIZ — Johnson Controls Inc., which makes building and automotive systems, announced it will close its plant in Cadiz that employs 559 workers as part of a restructuring plan.
The closure at the plant that makes frames for car seats will be phased out and is expected to be completed next summer, said company spokeswoman Debra Lacey. She said workers were told about the change Friday during a plant meeting.
The restructuring is in response to trends in the European and North American auto market, including the continued outsourcing of production to lower-cost countries, a company release said.
Johnson Controls said earlier this week it will cut jobs and consolidate manufacturing facilities as part of a plan to restructure its operations.
As a result of the actions, which the company expects to largely complete by early 2010, Johnson Controls said it plans to take a pretax charge of $450 million to $500 million in its 2008 fiscal fourth quarter.
Johnson Controls has 140,000 employees in more than 1,300 locations serving customers in 125 countries. Founded in 1885, the company has its headquarters in Milwaukee, its Web site states.
Lacey told The Associated Press on Saturday it was too soon to say how many of employees could be facing unemployment worldwide.
"We've identified locations globally that are part of our restructuring plan, but there's still work to be done ... before we'll release that information."
She said that it was the company's policy not to comment on any potential benefits and severance packages offered.
The Kentucky New Era reports a local statutory organization is urging workers not to quit prematurely. The West Kentucky Work force Investment Board issued a release Friday that stated if employees quit prior to their layoff date, they may not be eligible for unemployment insurance benefits, career counseling opportunities, re-employment assistance and job training options.
The organization said it's contacted the Trigg County Judge-Executive, the Office of Employment & Training and Hopkinsville Community College about making the services available to workers.
Johnson Controls has 20 locations in Kentucky, which include manufacturing plants and branch locations — sales and service offices responsible for customer service, Lacey said.
In July, union officials reported that more than 100 workers had been laid off at another Johnson Controls plant, located in Shelbyville, where truck seats are made.
Copyright 2008 The Associated Press.
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