Tenneco Shuts Down 55-Year-Old Arkansas Plant, Hundreds of Jobs at Risk
In a move that will have significant repercussions for the local community, auto parts manufacturer Tenneco has announced the permanent closure of its 55-year-old plant in Paragould, Arkansas. The news was broken to employees on January 14, with a letter obtained by NEAReport.com revealing that the shutdown will be carried out in three phases, culminating on April 30.
A History of Production
The Paragould facility, part of Tenneco’s DRiV motor parts aftermarket division, has been a major employer in the region since its opening in 1970. Originally built by Monroe Auto Equipment for shock absorber production, the site has undergone several expansions over the years, including a 24,000 square foot addition in 1972 to accommodate sintered metal parts production. After Tenneco acquired Monroe in 1977, the facility grew to occupy 450,000 square feet, becoming the second largest site in the company’s portfolio.
Challenges and Restructuring
However, despite its long history, the Paragould plant has faced financial difficulties in recent years, struggling to maintain market competitiveness. In its letter to employees, Tenneco cited the need to “realign its manufacturing footprint to respond to changing market conditions,” which includes resizing operations to reflect current and expected market demand.
Impact on the Community
The closure will have a significant impact on the local community, with over 1,100 employees set to lose their jobs. While the exact number of layoffs has not been disclosed, the Paragould Regional Chamber of Commerce has reported that the facility was one of the region’s largest employers. In response, the Chamber has pledged to connect affected employees with nearby job opportunities, with companies such as Anchor Packaging and Greenbrier already expressing interest.
Uncertain Future
As the plant prepares to shut its doors for the final time, the future of the site remains uncertain. While the Chamber’s Economic Development Director, Allison Hestand, has expressed optimism about the potential for redevelopment, the reality is that the closure will leave a significant void in the local economy. As the community comes to terms with the loss of this long-standing employer, one thing is clear: the impact of Tenneco’s decision will be felt for years to come.
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