US-based auto components supplier Modine Manufacturing is planning to shut down its manufacturing plant in McHenry, Illinois.
The move, which would result in loss of about 135 full-time employees, is part of Modine's proactive plan to focus on operating scale production facilities across the globe and remain cost-competitive.
Following the closure, the McHenry production will be moved to other facilities at Nuevo Laredo, Mexico, Lawrenceburg, Tennessee and Jefferson City, Missouri in North America.
Modine Manufacturing North America Regional vice president Scott Wollenberg said the company's analysis has led to conclude that the best long-term solution for it and its shareholders is to consolidate all North American parallel flow heat exchanger manufacturing into other North American facilities.
"Closing the McHenry plant will help us rationalize production, maintain the scale we need in our manufacturing operations and improve our overall competitiveness and profitability," Wollenberg added.
"We are committed to making the transition as seamless as possible for our customers and to assisting our affected employees during the transition."
McHenry facility currently produces parallel flow and serpentine condensers, oil coolers and radiators for the automotive, commercial vehicle, off-highway and building HVAC markets.
Under the plan, the facility would be closed over an 18-month period. The company plans to support the affected employees with severance benefits and work closely with the Illinois Department of Labor and other state as well as local agencies to offer employment assistance.
