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Tecumseh to Close Georgia Plant, Relocating to Brazil
Apr 8, 2003
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Tecumseh Products Company has announced its intent to close its engine manufacturing facility in Douglas, GA, U.S. The company said the closing is part of its ongoing strategy to reduce excess capacity by shifting production to overseas' lower-cost manufacturing facilities. Approximately 550 people will be affected by the shutdown. Layoffs are expected to begin on or after June 6, 2003, with the cessation of all manufacturing operations on or about June 30, 2003. Equipment from the Douglas plant will be transferred to other U.S. operations and to the company's new facility in Curitiba, Brazil. The company estimates the cost of this action to be U.S. $19 million to $23 million, consisting primarily of asset impairments and severance costs. A one-time charge will be taken in the second quarter of 2003. Tecumseh Products Company is a global manufacturer of hermetic compressors for residential and commercial refrigerators, freezers, water coolers, dehumidifiers, window air-conditioning units, and residential and commercial central system air-conditioners and heat pumps; gasoline engines and power train for lawn mowers, lawn and garden tractors, garden tillers, string trimmers, snow throwers, industrial and agricultural applications, and recreational vehicles; electric motors and components, including a.c. and d.c. motors, blowers, gear motors and linear actuators for a wide variety of industrial and consumer applications; and centrifugal pumps, sump pumps, and small submersible pumps for industrial, commercial, marine and agricultural applications.

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