ST. LOUIS– In a statement released last week, Viasystems Group Inc. announced it would be closing its Oak Creek, WI, manufacturing and distribution plant in 2009. Nearly 240 employees will be laid off in phases scheduled to last from January through May, and now it looks as if they will not be alone.
 
Viasystems has announced that it will also close its final-assembly and distribution plant in Newberry, SC. Around 19 employees will be affected. The company will transfer operations to facilities in Mexico and China.

The cash severance and closure charges are estimated at $12 million to $14 million. They will be partially offset through sales of excess equipment and the liquidation of working capital.
 
The company plans to decrease its global workforce by approximately 2,000 employees, including factory, sales and administrative positions. Viasystems stated that the current economic environment and the inability to pass the full impact of cost increases to its customers has resulted in the closure of both facilities, as well as the planned reduction in its global workforce. “In this type of environment, we must be proactive and preserve our solid financial position while positioning the company to maintain our world-class customer service,” explained David Sindelar, CEO.

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