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Tuesday, October 13, 2009

Volvo to lay off more workers in Pulaski

Officials at the factory said about 50 employees will be let go in mid-December.

From the Datasphere

Layoffs map

Unemployment in the region

Layoffs continue to shrink the work force at Volvo Trucks North America, the heavy duty truck plant in Pulaski County.

Spokesman Jim McNamara said Monday the company, which employs 1,200, will dismiss about 50 employees effective in mid-December.

Workers learned the news Friday.

Volvo has been grappling with a downturn that has depressed truck sales and most other automotive sectors during the long recession.

In June, the company predicted job losses at the New River Valley plant this fall would result from a decision to shift work to Pennsylvania.

The New River Valley plant, which had assembled both Volvo and Mack trucks, is losing the Mack line to a plant in Macungie, Pa. Officials said the transition, which was to begin in September and wrap up by November, was a strategic consolidation.

The economic downturn has dramatically hurt production and employment at the plant, which had more than 3,000 union workers four years ago.

In May, Volvo was in the process of repaying $1.29 million of $3.6 million the company received under a state grant and tax-break program. The reason was missed employment targets.

In a success for the company, Volvo has improved its trucks to cut air pollution virtually to zero, according to previous announcements. Customers have ordered the vehicles, which already meet 2010 air-quality rules from the Environmental Protection Agency, and the Pulaski County plant is building them for delivery later in 2009, the company announced two weeks ago.

The trucks rely on selective catalytic reduction, which the company said has performed well in test fleets in use in North America for two years.

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