Eaton Vehicle Group in Hastings, Nebraska, USA has announced plans to close the gear manufacturing facility and move production to San Luis Potosi, Mexico-details can be found in the press release below. Part of the reason for the move according to the company is that the scale of heat treating in the NE facility is not cost efficient. The Hastings facility includes batch IQ capacity. San Luis Potosi has over the years become a prime destination for auto parts manufacturers and consequently a “hotbed” of captive and commercial heat treating. 

“A manufacturing company in Hastings plans to close. Members of Eaton’s management team met with employees at the facility on Wednesday to announce the company plans to consolidate gear manufacturing. Right now, the plant manufactures gears for use in automotive differentials and industrial applications. Eaton Vehicle Group spokesperson Cara Klaer said the work being done in Hastings will be transferred to another Eaton manufacturing facility in North America, with the transition expected to be completed before July 2022. She said the production of differential gears will be transferred to their plant in San Luis Potosi, Mexico as Eaton’s Vehicle Group continues to adjust its footprint to best serve our customers. This consolidation will allow for operational efficiencies and increased utilization by capitalizing on existing gear machining and heat-treating scale in SLP.

“This closure is not a reflection on the Hastings employees’ contributions or their commitment to the business,” said Klaer. “We understand this announcement brings uncertainty for employees and their families, and we plan to provide support throughout the transition.” Klaer said the Hastings facility has about 83 employees. Adding that Eaton will be offering outplacement assistance, training and severance packages to impacted employees in good standing at the company. All employees are eligible and highly encouraged to apply for roles at other Eaton locations.” 

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