NTN announced today that it will discontinue operations at the NTN-BCA plant in Lititz, Pennsylvania and will shift production of most parts to other facilities in the United States. The move will allow NTN to control its manufacturing costs and ensure that pricing of BCA-branded bearings remains competitive for its customers.
The NTN-BCA plant produces bearings mainly for the automotive, construction, and agriculture industries. Many of these bearings are niche products with declining demand, which has been exacerbated by the current recession. Low production volumes and high overhead have led to the ballooning of manufacturing costs.
Pete Eich, president of NTN Bearing Corporation of America, stated, “This is a difficult step as it impacts employees, their families, and the surrounding community. At the same time it is a crucial step for the viability of our BCA product families.”
The plant currently employs 133 people, including workers represented by the United Steel Workers, Local No. 1035, down significantly from the peak of over 400 during the 1990’s. A limited number of BCA employees will transfer to other NTN locations. BCA will provide severance benefits to all employees and cooperate with Pennsylvania’s state outplacement programs.
John Cardos, General Manager of the Lititz plant, said, “BCA’s associates have worked very hard for many years in the face of declining markets. The economic implosion of 2008 was the final straw after many years of financial stress.”
The facility manufactures a variety of bearings including radial ball bearings, specialty agricultural bearings, and rocker arm bearings for engines. Most bearings manufactured at the Lititz facility will shift to the NTN-Bower plant in Macomb, Illinois. Bearings will continue to be marketed under the BCA® brand name.
Closure of the plant is scheduled for March 2010.
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