Auto parts maker Tenneco announced that it would cease operations and permanently close a 55-year-old plant in Paragould, Arkansas, local television station K8 News reported.
The company informed the facility’s workers of their impending layoffs on January 14. Online news source NEAReport.com obtained a letter to the employees that said the company will conduct the closure and permanent layoffs in three phases around March 31, April 15 and April 30, with no bumping rights currently in place.
Tenneco did not disclose how many workers would lose their jobs, but an article from the Paragould Regional Chamber of Commerce reported that the factory had more than 1,100 employees in 2022. The article also stated that the facility, part of Tenneco’s DRiV motor parts aftermarket division, annually assembled over 13 million shocks and struts and produced 2.4 million modular assemblies per year.
Most Read on IEN:
Tenneco explained in its letter to employees that the Paragould DRiV plant has faced financial difficulties and has been unable to maintain market competitiveness for several years. The company also stated that it needs to “realign its manufacturing footprint to respond to changing market conditions,” which includes resizing operations to reflect the current and expected market demand.
A Paragould Daily Press article from 1983 reported that Monroe Auto Equipment originally opened the Paragould factory for shock absorber production in 1970. The company added 24,000 square feet in 1972 to incorporate sintered metal parts production.
After acquiring Monroe in 1977, Tenneco eventually expanded the site to occupy 450,000 square feet and become the second largest facility in its portfolio, according to monroeheavyduty.com.
K8 News reported that the Chamber plans to connect the affected employees with nearby job opportunities. Chamber Economic Development Director Allison Hestand noted multiple companies, including Anchor Packaging and transportation manufacturer Greenbrier, had already made contact.
Hestand added that the factory’s future remains uncertain.
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.
WEBVTT
X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.009 --> 00:04.159
Auto parts maker Tenneco announced that it
would cease operations and permanently close a
00:04.159 --> 00:08.520
55 year old plant in Per Gold, Arkansas.
Local television station K8 News reported.
00:08.680 --> 00:12.630
The company informed the facility's workers of
their impending layoffs on January 14th.
00:12.880 --> 00:17.239
Online news source NEAreport.com obtained a
letter to the employees that said the company
00:17.239 --> 00:20.850
will conduct the closure and permanent layoffs
in three phases around March 31st,
00:21.170 --> 00:24.549
April 15th, and April 30th, with no bumming
rights currently in place.
00:24.760 --> 00:26.559
Tenantco did not disclose how many workers
would.
00:26.687 --> 00:30.597
Lose their jobs, but an article from the Per
Gold Regional Chamber of Commerce reported that
00:30.597 --> 00:34.407
the factory featured more than 1100 employees
in 2022.
00:34.556 --> 00:38.567
The article also stated that the facility, part
of Tenneco's Drive motor parts aftermarket
00:38.567 --> 00:43.356
division, annually assembled over 13 million
shocks and struts and produced 2.4 million
00:43.356 --> 00:44.786
modular assemblies per year.
00:45.036 --> 00:49.087
Tenneco explained in its letter to employees
that the Perol Drive plant has faced financial
00:49.087 --> 00:52.907
difficulties and has been unable to maintain
market competitiveness for several years.
00:53.036 --> 00:57.633
The company Also stated that it needs to
realign its manufacturing footprint to respond
00:57.633 --> 01:02.223
to changing market conditions, which includes
resizing operations to reflect the current and
01:02.223 --> 01:06.274
expected market demand.
A Perold Daily Press article from 1983 reported
01:06.274 --> 01:09.994
that Monroe Auto Equipment originally opened
the Pergoold factory for shock absorber
01:09.994 --> 01:14.944
production in 1970.
The company added 24,000 square feet in 1972 to
01:14.944 --> 01:16.793
incorporate sintered metal parts production.
01:17.033 --> 01:19.884
After acquiring Monroe in 1977, Tenneco
eventually.
01:20.041 --> 01:25.430
Expanded the site to occupy 450,000 square feet
and become the second largest facility in its
01:25.430 --> 01:28.130
portfolio, according to Monroe Heavy duty.com.
01:28.331 --> 01:32.310
K8 News reported that the chamber plans to
connect the affected employees with nearby job
01:32.310 --> 01:35.471
opportunities.
Chamber Economic Development director Alison
01:35.471 --> 01:39.511
Heistan noted multiple companies, including
Anchor Packaging and transportation
01:39.511 --> 01:41.801
manufacturer Greenbrier, had already made
contact.
01:41.911 --> 01:44.521
Heistan added that the factory's future remains
uncertain.
01:44.661 --> 01:46.551
I'm Nolan Balstein.
This is manufacturing now.