By Jeff Tucker, Shelbyville News Staff writer
Shelbyville's Meridian Automotive Systems announced Thursday that the plant will be idled for an indefinite period of time and that 295 employees were losing their jobs.
The news of the first auto supplier to close in Shelbyville in recent years follows a similar "mayday" announcement by Meridian in early June, when the company announced a reduction of almost 200 jobs at the Shelbyville plant at 501 Northridge Drive.
C.P. Woods, corporate director of Human Resources for Meridian, said in a letter to Shelbyville Mayor Scott Furgeson dated Thursday that the company was developing plans to idle operations at the plant for "what we expect at this time to be an indefinite basis."
"Consistent with these plans, employment separations are expected to commence on or about (Thursday)," said Woods, who could not be reached for comment Thursday. "We anticipate that these plans, when finalized, would involve the entire facility."
Woods said the operational plan was to idle the plant in one phase on or about Thursday.
"We anticipate that the reductions will cause potential employee separations at this facility totaling 295," Woods wrote. "However, various factors may still affect these plans and the timing of employee separations."
Woods said a total of 278 hourly positions were being cut, including 26 group leaders, 90 press operators and 99 assemblers, as well as 17 salaried posts. He said the company would inform the mayor of any changes or as additional information becomes available.
Furgeson told the newspaper Thursday that he hoped the long-standing Shelbyville plant eventually would resume production.
"I don't know Meridian's position as a company, so I don't know their long-term plan with this facility," the mayor said. "So hopefully they will continue to keep the plant in their long-term plans and will someday reopen it."
On June 8, Meridian announced a planned reduction of 198 jobs at the Shelbyville plant, including 108 assembly jobs.Woods said then in a prior letter to Furgeson that the "reductions are being brought about due to a major customer unexpectedly announcing the immediate re-sourcing of a significant amount of business" and that employment separations were expected to begin on or about June 1.
The major auto customer was not specified in that letter, although the announcement came on the heels of General Motors Corp. filing for bankruptcy. Meridian has manufactured rubber or plastic mills, extrusion dies and injection molds for several automotive companies, including GM.
Woods said last month the layoffs would occur in three phases with 153 positions eliminated in the first round of job cuts at the start of June, with a second round of eight work-force reductions in mid-June, followed by a third and final round of 37 job cuts taking place between Aug. 24 and 31.
Woods noted at the time that the timetable was based "on the best information currently available" and that "various factors may still affect these plans and the timing of employee separations."
Furgeson said Thurs-day's announcement supersedes Meridian's prior schedule of job cuts.
"They hadn't made all their cuts that they said they were going to make, so I guess this kind of supersedes that," he said. "Now this is final, I guess. They are just letting everyone go. I assume they're done."
As recently as 2006, Meridian had 370 employees, according to the Shelby County Chamber of Commerce Business & Community Directory.
Meridian, headquartered in Allen Park, Mich., is a supplier of technologically advanced metals, thermoplastics and composite products.
The company has a plant each in Canada and Mexico, four in Michigan, and three others in Indiana, including one in Rushville.
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