Cleveland-based Eaton Corp. has announced it will lay off 130 hourly production employees and 33 salaried employees at its Pewaukee Cooper Power Systems Division facility as it outsources production to Mexico. The facility manufactures line installation and protective equipment.
Molded rubber production work will be moved to a new facility in Queretaro, Mexico in the first quarter of 2014. Full production will be up and running there by the end of the fourth quarter of 2015.
The Pewaukee facility will remain the line installation and protective equipment business unit headquarters, with engineering, research and development, support and marketing for the LIPE segment.
“Today’s announcement is not a reflection on the dedicated and hard-working employees at the Pewaukee facility,” the company said in a statement. “Eaton will do everything possible to ensure that those affected are treated with care and respect during this difficult time.”
The Pewaukee facility currently has 260 employees. Company representatives will meet with those affected and provide severance benefits and outplacement services.
Moving production to Mexico will allow Cooper Power to be competitive in the LIPE markets it serves and create a more efficient supply chain and reaction time for North America, the company said.
“These actions are being taken due to ongoing business and market conditions and a continued challenging business climate,” the company said in a statement. “They will allow the business to continue to compete globally and meet market demand.”
