GRAND RAPIDS — Dematic Corp. announced today that it will proceed with plans to close its Grand Rapids manufacturing operations and move production to its facility in Monterrey, Mexico.
The Grand Rapids-based manufacturer of conveyor systems expects the decision to impact 300 workers, according to a statement. The decision comes following talks with the United Auto Workers union.
Workers at the Grand Rapids Dematic plant are represented by UAW Local 1485.
At the time the company first announced it was exploring the move in early January 2016, company executives cited the move as part of an on-going company evaluation of productivity cost issues, rather than anything labor related.
“This is not a union issue,” Rob Arguelles, executive vice president at Dematic, said for a previous report in MiBiz. “It’s based on cost productivity issues as we need to secure the jobs of 5,000 worker across our entire operation.”
The company expects that the transition to Mexico will be completed in “several months,” according to the statement.