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Meggitt plans second Mexican aircraft-parts plant in next two years
By Jim Mackinnon
Beacon Journal business writer
Published on Tuesday, Dec 18, 2007
Meggitt Aircraft Braking Systems told its Akron employees that it will shift some operations to a new, second factory in central Mexico in the next 18 to 24 months.
''Unfortunately, this will result in the reduction of employment in Akron,'' the company wrote to employees Friday.
The company makes wheel and brake parts for some of the most popular commercial, military and general aviation aircraft in the world. Facilities are at Akron Fulton International Airport near the Akron Airdock.
Meggitt Aircraft Braking Systems has nearly 370 hourly employees in Akron represented by United Auto Workers Local 856. Great Britain-based aircraft company Meggitt plc acquired Aircraft Braking Systems Corp. when Meggitt announced in March it was buying K&F Indus
tries Holdings Inc. for $1.8 billion, including debt.
Gene Steele, president of UAW Local 856, said, ''Here we are, just a week away from Christmas, and this is your holiday greeting. Our members have been good workers for this company.''
Meggitt, which makes drones and practice targets and is an equipment supplier to Airbus and Boeing, is merging Aircraft Braking Systems with its Dunlop Aerospace Braking Systems division. In the winter edition of Meggitt Review magazine, Meggitt said the official launch of the combined business will be Jan. 7.
The company declined to comment. The Beacon Journal received a copy of a letter given to employees.
''After a review of all available options, a decision has been reached concerning the location of future manufacturing facilities in Mexico,'' the letter said. ''This decision was not easily reached and it reflects the company's judgment as to how best to ensure that we can remain competitive in a global economy.
'' . . . In the next few weeks, company officials will be meeting with government officials in Mexico to conduct and conclude negotiations that will enable Meggitt Aircraft Braking Systems to construct a second manufacturing facility in central Mexico,'' the one-page letter read. ''This is not a negative comment on the quality of work or dedication of the employees in Akron, but is a decision the company believes is necessary in order to operate efficiently, economically and competitively.''
Aircraft Braking Systems said in 2006 it planned to shift some production work from Akron to a new factory in Mexico, affecting as many as 60 machining jobs. The UAW said employees affected by the work shifted to Mexico were integrated elsewhere at the Akron plant.
Steele said he thinks Aircraft Braking Systems and the Akron operations are profitable. The union's four-year contract runs through 2010.
''It's been a very lucrative, profitable business for many years,'' Steele said. ''It's not a situation where they have not been making money.''
Steele said the local will work with city officials, the UAW international and others to see if jobs can be saved at the Akron plant.
The city of Akron will talk with Meggitt to see what kind of opportunities there are to help the company grow here, said Bob Bowman, deputy mayor for economic development.
The company has not said much of anything about its new Mexican-factory plan to the city, he said.
Any U.S. manufacturing jobs that can be identified as commodities are at risk, Bowman said. If a company decides its products can be made faster and cheaper elsewhere, that's where the work will end up going, he said.
The response is to cultivate cutting-edge — not commodity — technologies in the United States, Bowman said.
The company has not said how many production jobs will be shifted from Akron to Mexico, Steele said. The union will work to get the new company owners to be more specific about their plans, he said.
The UAW members work three shifts at the Akron plant, he said. They make between $16 and $18 an hour, plus benefits, Steele said.
He said the bulk of the UAW members were hired in the 1970s and '80s. As many as 60 were hired since the current union contract went into effect in 2006.
''It's a kick in the teeth to the membership,'' he said. ''It creates hardship. . . . I know what it's like to lose a job. I've been down that road before.''
At its height, back when the company was known as Goodyear Aerospace Corp., the facilities had about 1,600 hourly workers, said Steele, a former United Rubber Workers member who has 29 years of service.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
Meggitt Aircraft Braking Systems told its Akron employees that it will shift some operations to a new, second factory in central Mexico in the next 18 to 24 months.
Get the full article here.
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