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August 26, 2009
Cummins Filtration, a division of diesel engine manufacturer Cummins Inc., said Tuesday it is cutting 400 jobs in Lake Mills and consolidating operations at a factory in Mexico.
About 400 workers in Winnebago County will lose jobs from November to March 2010. Other operations at the plant, and about 110 people there, will remain.
Oil and fuel filter assembly operations in Lake Mills will be moved to San Luis Potosi, Mexico, beginning in November. The company also is considering moving additional assembly work from its filtration plant in Cookeville, Tenn.
"The filtration industry has become increasingly price sensitive in the past several years, and the recent reduction in demand has heightened the need for us to take decisive action to make our business more cost competitive, both for the present and well into the future," said Rich Freeland, president of the components business, which includes Cummins Filtration.
Cummins Filtration employs about 330 people in San Luis Potosi.
Cummins Filtration is the largest of four businesses in the Cummins Components group. The Components group is among the hardest hit of the four segments, as the global demand for diesel engines and related components plummeted in the last three quarters.
Components sales dipped 41 percent in the second quarter compared with that time in 2008. Cummins Filtration sales declined 37 percent.
Winnebago County has one of the highest unemployment rates in the state, at 8.8 percent. It has had layoffs at Winnebago Industries.
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