Cummins will merge filter factory and layoffs


On Tuesday evening, Beijing time, Cummins Filtration of Cummins's (CMI) diesel engine division said that in the coming months, a significant part of its North American filter assembly business will be integrated into a factory in Mexico. It is expected that this move will result in about 400 people. Layoffs.

Starting in November of this year, the company will relocate its oil and fuel filter assembly operations at the Lake Mills plant in Iowa to a facility in San Luis Potosi, Mexico. The company is also considering moving more assembly tasks from the filter plant in Cookeville, Tennessee, but no final decision has yet been made.

About 400 employees at the Iowa plant will lose their jobs between November this year and March next year. The factory also employs about 100 other employees and is responsible for other businesses. They will not be affected by the layoffs.

Rich Freeland, president of Cummins Components Business, said: “In the past few years, the filter industry has become more and more sensitive to price, and the recent decline in demand has increased the necessity for us to take decisive action. In order to make our business more competitive in cost, both now and in the future.”

Cummins Filtration currently employs approximately 330 people in San Luis Potosi.

Cummins Filtration is the largest of the four divisions that make up Cummins Components. Due to the sharp decline in global demand for engines and related parts over the past three quarters, the parts business has been Cummins’s in recent months. One of the hardest hit businesses.

Cummins's second-quarter revenue fell 41% in the second quarter of this year, with Cummins Filtration’s revenue falling by 37%.

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