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Company plans to close 450-worker Indiana factory

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A company's plans to close a 450-worker trailer-hitch manufacturing factory in northern Indiana and move the work to Mexico has frustrated and angered local officials.

Many workers from the Cequent Performance Products factory in Goshen packed a city council meeting this week to push city officials into trying to keep the plant open.

The company told workers about its plans to close the factory last week, although company spokesman Alan Upchurch told The Goshen News that a final decision isn't expected until next month.

"The increasingly competitive global market is forcing customers to demand the lowest cost products," Upchurch said. "... In addition, a move would lower shipping costs because many customers and potential customers have assembly plants in Mexico and the southern U.S."

Upchurch said if Cequent Performance, a subsidiary of Bloomfield Hills, Mich.-based TriMas Corp., decided to close the Goshen factory, it would likely take much of 2013 to complete.

United Steel Workers official Mike O'Brien said the union expected to meet with company executives next week to discuss the closing plans.

"They are getting the rug pulled out from under them after they have contributed so greatly to the company's success," O'Brien told WSBT-TV. "This is not a plant that is losing money."

Officials in the city about 25 miles southeast of South Bend aren't sure whether they can do anything to change the company's mind about closing the factory.

"A lot of people there have been working there for quite a while," City Councilman Jeremy Stutsman said. "It's always sad when you lose jobs in your town, but it's even worse when it goes to another country."

Mayor Allan Kauffman said TriMas is a profitable company and the closing decision was a big hit to the workers.

"These aren't high-paying jobs anyway," Kauffman said. "... I think it's to drive the wages down and the profit up."

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  • Say What?
    Sure the company wants to cut costs and increase profits!!! For what other purpose do you dummies think a company stays in business? Get Real- and Wake Up!
  • Yet another blow to the lower and middle classes
    I'm not aware of Romney or Obama having any plan to prevent such job losses from continuing. We must cease these sham "free" trade policies because American workers can't compete with third-world countries, or even Mexico, unless America wants its masses to work for $1/hour and we want to heavily pollute our air and water. We need to implement fair trade policies that level the playing field by accounting for exploitation of workers and the environment in other countries. It is not realistic that 300+ million Americans will thrive when we have exported all of our production of tangible items to foreign lands. It is also a national security liability when we don't maintain the capacity to manufacture needed items in our own country. I will be voting for third-party candidates until either the Ds or Rs start talking about implementing fair trade policies rather than paying lip service to increasing American manufacturing jobs.

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  1. Aaron is my fav!

  2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See http://energyfromthorium.com to learn more.

  3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

  4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

  5. I always giggle when I read comments from people complaining that a market is "too saturated" with one thing or another. What does that even mean? If someone is able to open and sustain a new business, whether you think there is room enough for them or not, more power to them. Personally, I love visiting as many of the new local breweries as possible. You do realize that most of these establishments include a dining component and therefore are pretty similar to restaurants, right? When was the last time I heard someone say "You know, I think we have too many locally owned restaurants"? Um, never...

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