One of Northeast Arkansas’ largest manufacturers will shutter its facility in Paragould after being in operation for 50 years. Tenneco told its workers at a meeting Tuesday (Jan. 14) that a loss of market share and tightening global economic conditions were among the reasons for the closure.
The Paragould Chamber of Commerce reported that the company had 1,100 employees at the facility as of 2022. An employee told KAIT that the closure will be staggered.
The first phase of layoffs is scheduled to occur around Mar. 31, with the second phase around Apr. 15 and the third phase of layoffs around Apr. 30. Those days are subject to change within 14 days following the above dates.
“The company has made the difficult decision to close our manufacturing operations in Paragould, Arkansas. This is not a decision we made lightly, as this affects people we highly value. We will provide transition assistance for all affected employees,” the company said in a released statement.
“The company needs to realign its manufacturing footprint to respond to changing market conditions. Adjusting the size of our operations to match the current market demand, as well as what is anticipated in the future, is necessary to strengthen our long-term sustainability,” the statement said.
Tenneco is based in Chicago and makes shock absorbers, struts, and other auto parts.
This article was originally published on content partners Talk Business & Politics' website.
