Minden company calls cutbacks the result of outsourcing to Mexico
MINDEN, Neb. (KSNB) - Forty one employees at a Minden plant are losing their jobs.
Royal Engineered Composites announced Tuesday that a commercial aircraft client is shifting production to a “low-cost facility in Mexico.”
In a press release, Royal said the layoffs would take place in phases in October, November and December. The company employs 240 workers and makes components which are used in the manufacture of commercial aircraft. Royal did not identify the customer in question, but a company spokesperson said the parts involved support engine nacelle components for an engine built by GE aviation.
In a statement, Royal President Dave Arnold said, “There are incredible pressures to reduce costs in commercial aircraft. The customer made the decision to change the materials and design and shift production to a low cost workforce in Mexico.”
Royal will be connecting with the Rapid Response Team at the Nebraska Department of Labor and is open to inviting area employers on-site to interview affected employees. Severance packages will be offered to employees for working until their release date.
“It hurts having to lose members of our team,” said Arnold. “We will help them through this process every step of the way. By giving them advanced notice of the reduction, we hope to reduce the impact to the employees and their families. Almost all the employers in the area are in dire need of workers right now. By bringing in employers for on-site interviews, we hope our employees will be able to start a new position right away after we finish delivery of the contract. For the businesses in the area that are lucky enough to hire them, you’re adding some great people to your workforce.”
Copyright 2021 KSNB. All rights reserved.