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Ky. automotive plant closing, over 550 losing jobs

September 07, 2008 @ 07:09 AM

Herald-Dispatch.com

CADIZ, Ky. (AP) — Johnson Controls Inc., which makes building and automotive systems, announced it will close its plant in Cadiz that employs 559 workers as part of a restructuring plan.

The closure at the plant that makes frames for car seats will be phased out and is expected to be completed next summer, said company spokeswoman Debra Lacey. She said workers were told about the change Friday during a plant meeting.

The restructuring is in response to trends in the European and North American auto market, including the continued outsourcing of production to lower-cost countries, a company release said.

Johnson Controls said earlier this week it will cut jobs and consolidate manufacturing facilities as part of a plan to restructure its operations.

As a result of the actions, which the company expects to largely complete by early 2010, Johnson Controls said it plans to take a pretax charge of $450 million to $500 million in its 2008 fiscal fourth quarter.

Johnson Controls has 140,000 employees in more than 1,300 locations serving customers in 125 countries. Founded in 1885, the company has its headquarters in Milwaukee, its Web site states.