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Saturday, July 11, 2009

Botetourt County automotive supplier to close in 2010

The closing at JTEKT North America will affect about 260 employees.

Editor's note: This online version has been updated from the print version to correct a mistake in the headline regarding the location of the facility.

Automotive supplier JTEKT North America announced Friday it will end operations at its Botetourt County facility during the first quarter of 2010.

Michael Bowers, vice president of operations, said in a news release that a recent decline in vehicle sales has taken a toll on the company.

"JNA's manufacturing plants are operating between 35 percent and 65 percent of capacity," Bowers said.

"Automotive will recover, but that recovery is expected to be prolonged and the company's business situation doesn't allow it to wait."

JNA had recently attempted to adjust to lower sales by freezing wages, salaries and new hires; reducing overtime; furloughing team members; and offering voluntary early retirement, among other initiatives.

The Daleville plant, formerly Koyo Steering Systems and in operation since 2001, will begin to phase down operations in October and should close by February, Bowers said.

The move will affect about 260 employees.

Production will be consolidated into JNA's plants in Texas and Tennessee, Bowers said, adding that some Daleville employees would be offered employment at those locations.

He said in addition to state unemployment benefits, all employees will receive pay for an additional 13 weeks and free medical and dental coverage for three months beyond the plant's closure. A monthly incentive should also allow employees to earn supplemental income during the plant's phase-down period.

JNA employs more than 2,400 people at offices, technical centers and eight manufacturing plants in Virginia, South Carolina, Tennessee and Texas.

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