55-Year-Old Arkansas Plant Closing Permanently

The facility hasn't been able to maintain market competitiveness for several years.

Transcript

Auto parts maker Tenneco announced that it would cease operations and permanently close a 55-year-old plant in Paragould, Arkansas, local television station K8 News reported.

The company informed the facility’s workers of their impending layoffs on January 14. Online news source NEAReport.com obtained a letter to the employees that said the company will conduct the closure and permanent layoffs in three phases around March 31, April 15 and April 30, with no bumping rights currently in place.

Tenneco did not disclose how many workers would lose their jobs, but an article from the Paragould Regional Chamber of Commerce reported that the factory had more than 1,100 employees in 2022. The article also stated that the facility, part of Tenneco’s DRiV motor parts aftermarket division, annually assembled over 13 million shocks and struts and produced 2.4 million modular assemblies per year.

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Tenneco explained in its letter to employees that the Paragould DRiV plant has faced financial difficulties and has been unable to maintain market competitiveness for several years. The company also stated that it needs to “realign its manufacturing footprint to respond to changing market conditions,” which includes resizing operations to reflect the current and expected market demand.

Paragould Daily Press article from 1983 reported that Monroe Auto Equipment originally opened the Paragould factory for shock absorber production in 1970. The company added 24,000 square feet in 1972 to incorporate sintered metal parts production.

After acquiring Monroe in 1977, Tenneco eventually expanded the site to occupy 450,000 square feet and become the second largest facility in its portfolio, according to monroeheavyduty.com.

K8 News reported that the Chamber plans to connect the affected employees with nearby job opportunities. Chamber Economic Development Director Allison Hestand noted multiple companies, including Anchor Packaging and transportation manufacturer Greenbrier, had already made contact.

Hestand added that the factory’s future remains uncertain.

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