Cummins (CMI) Filtration Announces Consolidation of Facility in San Luis Potosi, Mexico: Workforce to be Cut by 400 Employees
Cummins Filtration, a division of Cummins Inc. (NYSE: CMI) today announced that it is consolidating a significant portion of its North American filter assembly operations into its facility in San Luis Potosi, Mexico, over the next several months in order to keep the business competitive in this region.
Under the consolidation, filter assembly operations at the Cummins Filtration plant in Lake Mills, Iowa, will be moved to San Luis Potosi, beginning in November. The Company also is considering moving additional assembly work from its Filtration plant in Cookeville, Tennessee, but a final decision has not yet been made.
As a result of the consolidation, the Cummins workforce in Lake Mills will be reduced by approximately 400 workers between November 2009 and March 2010. Other operations, which employ approximately 110 people, will remain at the Lake Mills plant.
The consolidation, which involves assembly of oil and fuel filters, is expected to result in significant annual savings to Cummins Filtration after the costs associated with the action are recouped. The move will be seamless to Cummins Filtration customers.
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