Eaton told 150 workers at its Aurora facility that operations there will shut down by February 2017, and manufacturing of the hoses now made there will be moved to other factories in North America and Europe.
CLEVELAND, Ohio -- Eaton, the global power management company, on Tuesday told 150 employees at its hydraulics facility in Aurora that it will shut down operations there by February 2017.
"This decision is the result of a continuing decline in the global hydraulics business and markets served by this facility," said Eaton spokesman Scott R. Schroeder via email. "Demand for the hoses made at the facility will be handled by production facilities in North America and Europe. The closing is part of a three-year, $400 million restructuring program that Eaton addressed in its fourth quarter, Feb. 3, 2015, earnings announcement."
Eaton's Aurora facility makes thermoplastic hose and tubing used in the industrial, beverage, oil and gas, hydraulics and vehicle industries. The facility was acquired when Eaton bought the Synflex Hose and Tubing business from Saint-Gobain Performance Plastics Corp. in Paris in December 2006.
"We know this announcement causes unease," Schroeder said, but "we are sharing this information with employees today, because we are committed to open and honest communication and want to give employees as much time as possible to plan for the future."
Eaton, which employs about 97,000 people worldwide and sells its products in more than 175 countries, said the timing of job cuts will depend on the roles, but that workers will receive 60-days notice before their jobs are eliminated.
"This is a very difficult day for everyone at Eaton," Schroeder said. "I would just reiterate that this closing is in no way a reflection on our employees. They've worked very hard to meet our customers' needs. We are holding a series of meetings with each shift today - giving them as much advance notice as possible so they can plan for the future.
"We are committed to acting with care and concern for each employee as we move through this very difficult process," he said. "We've given our employees the rest of the day off, with pay, and we are available to answer any questions they have about the severance package and benefits," including outplacement services to help them find new jobs.
"We will encourage them to consider positions at other Eaton locations and help them with the application process. We will also work with the community to understand other opportunities in the area they may wish to consider," he added. "We will work with our customers to ensure their needs are met during this transition."
Tuesday's news follows Eaton's announcement in early February that it was closing its Berea factory that manufactures quick-connect couplings for hydraulic lines, cutting 102 jobs. Layoffs began April 9, and the facility will close by December.
Eaton said it plans to buy the couplings from another manufacturer and ship them to be assembled at its plant in Mexico.
Berea employees will also receive severance pay and benefits. "It is our hope that these programs will lessen the impact of the plant closures on individual employees and on the the community as a whole," Eaton said.
The company said at the time that "this decision is the result of an ongoing review of our manufacturing processes to ensure that Eaton is well-positioned for the future and that our businesses operate as efficiently as possible."
Eaton, now based in Dublin, Ireland, with its North American headquarters in Beachwood, said it employs more than 2,770 people in Ohio, and spent more than $602 million with Ohio suppliers in 2015.
After the 2017 layoffs, Eaton will still have six manufacturing, sales, and office facilities in Northeast Ohio, in Brook Park, Beachwood, Brooklyn, Euclid, Parma, and Richmond Heights.
Eaton, whose website says its power management solutions "make electrical, hydraulic and mechanical power operate more efficiently, reliably, safely and sustainably," will announce its first quarter 2016 earnings on Friday, April 29, before the markets open.
The company will host a conference call at 10 a.m. Eastern time that day to discuss its results with securities analysts and institutional investors. The call will be webcast live via the Eaton First Quarter 2016 Earnings Results link on Eaton's home page at www.eaton.com .