Minden firm calls cutbacks result of outsourcing to Mexico
MINDEN, Neb. (KSNB) – Forty-one workers at a factory in Minden lose their jobs.
Royal Engineered Composites announced Tuesday that a commercial aircraft customer is shifting production to a “low-cost facility in Mexico.”
In a press release, Royal said layoffs would take place in phases in October, November and December. The company employs 240 workers and manufactures components that are used in the manufacture of commercial aircraft. Royal has not identified the customer in question, but a company spokesperson said the parts involved support the engine nacelle components of an engine built by GE Aviation.
In a statement, Royal President Dave Arnold said: “There is incredible pressure to reduce the costs of commercial aircraft. The customer made the decision to change the materials and design and shift production to low cost labor in Mexico.
Royal will be contacting the Nebraska Department of Labor’s Rapid Response Team and is open to inviting area employers on site to interview affected employees. Severance benefits will be offered to employees for working until their release date.
“It hurts to lose members of our team,” said Arnold. “We will help them through this process every step of the way. By giving them advance notice of the reduction, we hope to reduce the impact on employees and their families. Almost all employers in the region are in dire need of workers right now. By bringing in employers for on-site interviews, we hope that our employees can start a new position as soon as the contract is delivered. For those businesses in the area that are fortunate enough to hire them, you are adding great people to your workforce.
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