Chicago-based Northstar Aerospace Inc. will close its Anderson plant in mid-2011 and move the work to its Canadian operations,
the company announced in a press release.
The Anderson plant, which opened in 2006, has about 40 employees.
The plant makes aircraft parts, including some for Rolls-Royce jet engines used in Boeing and Airbus commercial aircraft.
The company is closing the Anderson plant because the facility is no longer capable of producing the parts it needs to supply the Rolls-Royce factory in Indianapolis, Northstar CEO Glenn Hess said in a conference call with analysts earlier this month.
"We have not really lost any work, but the nature of the work that's being done in Anderson is roughing operations, and Rolls-Royce’s future plans are to do more finished parts,” Hess said, according to The Canadian Press. “Our Anderson facility isn't really suited for that because it doesn't have the necessary chemical-treating and heat-treating capability."
Northstar operates two plants in Canada, both in the province of Ontario.