Dematic Considers Offshoring Some Production Work to Mexico

Dematic Considers Offshoring Some Production Work to Mexico

Dematic is considering plans to close its manufacturing plant in Grand Rapids, Mich., and offshore that work to Mexico.

Dematic, a supplier of integrated automated technology, software and services to optimize the supply chain, is considering plans to close its manufacturing plant in Grand Rapids, Mich., over the next year. If a decision to relocate is made, the closure of the manufacturing plant could impact as many as 300 positions in fabrication, assembly, warehouse, and plant administration. No other functions should be affected, according to the company, including sales, engineering, solution development and customer service.

The company reports that it is considering this action to remain cost competitive for its customers.

The Grand Rapids facility manufactures conveyor and sortation equipment. If the plan Dematic is currently considering is implemented, most production activities will be transferred to its facility in Monterrey, Mexico, over an approximate six- to nine-month period, likely beginning in early 2016 and concluding in September 2016. If Dematic decides to relocate, it intends to retain as many employees as possible. The company currently employs 5,000.

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