Ferro Corp, a functional coatings and color solutions company with headquarters in Mayfield Heights, Ohio, plans to consolidate production from two of its U.S. facilities at its expanded facility in Villagran, Mexico through 2019 and 2020.
According to a company statement, Ferro continually assesses its facilities and capabilities to find additional opportunities to improve operations, remain competitive in rapidly evolving markets and enable future growth. The statement also notes that its business analysis shows that investing in regional manufacturing centers of excellence provides many advantages over operating several locations, each with their own, often dated and inefficient, manufacturing technologies.
Ferro’s facility in Villagran, Mexico, has been branded as the company’s Americas manufacturing center of excellence. As a result, Ferro anticipates a total reduction of approximately 240 positions at its facilities in Washington, Pa., and Cleveland. Approximately 100 positions will remain in those locations.
Increased globalization has caused many companies to shift production to Mexico, where it can be cheaper to operate, rather than the U.S. Tariffs have increased that trend according to the New York Times, but Ferro did not cite tariffs as a reason for its decision to cut 240 U.S. jobs.
“No, [tariffs] did not really have an impact on the decisions,” says Mary Abood, director of corporate communications.
Ferro has notified its associates at the two sites of these plans. The company has transition programs for each associate affected by the consolidation, and announced that there are opportunities for those employees to transfer to other Ferro jobs. The company does not anticipate disruption of service to its customers.
Along with Villagran, Ferro also is expanding its operations in King of Prussia, Pa., and Norcross, Ga., and is investing in several of its other U.S. sites, including in Cleveland, Edison, N.J., and Penn Yan, N.Y. Ferro’s initiatives include investments in facilities, equipment, technical and customer support and research and development.