http://heraldargus.com/articles/2012/06/28...2a540748244.txtQUOTE
Federal Mogul moving to Mexico
By Deborah Sederberg
Staff writer
Published: Thursday, June 28, 2012 5:06 PM CDT
MICHIGAN CITY — Federal Mogul officials met with employees Wednesday morning to discuss the company's decision to cease manufacturing at the Michigan City plant at the end of the year.
According to Jim Burke, director of corporate communication for Federal Mogul, 402 Royal Road, the company plans to move the local manufacturing operation to Juarez, Mexico, where the company already has a facility.
The move is about "achieving greater efficiency," Burke said. "It will make us more competitive."
Some local employees may be offered positions at other Federal Mogul plants, Burke said. In addition, he said, the company will do what it can to assist employees who will lose their jobs, but he was not yet prepared to describe the severance program.
Federal Mogul employs about 100 people in Michigan City, both in manufacturing and in support positions.
On its website, Federal Mogul describes itself as "a $6.9 billion leading global automotive supplier offering a comprehensive portfolio of quality products, trusted brands and creative solutions to original equipment manufacturers of automotive, light commercial, heavy-duty and off-highway vehicles, as well as in power generation, aerospace, marine, rail, industrial, and the worldwide after market."
While the company has made its closing announcement, Kevin Kieft, executive director of the Michigan City Economic Development Corporation, has not given up hope.
Mayor Ron Meer, who had spoken with Federal Mogul officials on Wednesday, also expressed the hope that the retention and expansion arm of the economic development corporation can make a convincing case for remaining in Michigan City.
Just last year, the EDC, working with other agencies, saved 70 jobs at Sanlo Manufacturing.
Sanlo's local plant officials and corporate management collaborated with city officials and two training agencies to assist in keeping the factory here.
The Northwest Indiana Workforce Board and the Center of Workforce Innovations collaborated with Sanlo to secure training funds from the Indiana Department of Workforce Development to prepare some workers to operate new equipment and to improve the skills of other employees.
Companies move manufacturing jobs to Mexico because "they want to pay low, low wages," Kieft said.
But other problems may present themselves.
"Security is an issue (in Mexico)" Kieft said, "and (manufacturing plants there) just can't match the quality of U.S. manufacturers," he said.
Both Kieft and Meer pledged to work to keep Federal Mogul and its jobs here.
"It's tough," Kieft admitted, "but we will do everything we can we can" to keep Federal Mogul in the community.