St. Louis-based Belden’s Midlothian manufacturing plant employees 45 local workers who make connectors and components for industrial automation. In December 2008 Belden announced that it would cut its global workforce by 20% (around 1800 people) by late 2009. The layoffs are in response to the global economic downturn that has led to lower demand for their products.
In a December statement John Stroup, president and chief executive, said:
"As we reported in October, we have seen softening of our major markets globally, and we expect that economic conditions will remain challenging for some time, We regret the hardship these actions will impose on our (employees)."
During the December announcement Belden indicated that some U.S. plant closings would occur as part of a restructuring plan but declined to say what plants were being considered.
Belden now says that the Midlothian plant will be closed by July and the manufacturing operations transferred to their plant in Tijuana, Mexico. Belen says those affected by layoffs will be eligible for severance benefits. Beldoen is expecting to save up to 30 million Dollars in 2009 as a result of layoffs.
This is not the first Belden layoff that involved moving U.S. jobs to Mexico, in March of 2008 they announced plans to close the Manchester, Conn. plant resulting in 132 people losing their jobs, this plants operations were also transferred to Mexico.
"We regret the impact of these actions on the affected associates," said John Stroup,President and Chief Executive Officer of Belden. "It is a difficult, but necessary step in the implementation of our regional manufacturing strategy. The expected cost savings associated with this action are further benefit of this strategy and take advantage of our lower cost capacity at the recently completed Nogales, Mexico facility."