Injection molder Nypro Inc. is laying off some top executives at its headquarters in Clinton, Mass., and temporarily has cut the pay of others. The company also is closing an automotive parts plant in Longmont, Colo., to help centralize its car industry business.
The Longmont plant, with about 100 employees and 20 presses, probably will close by late summer, said Nypro spokesman Al Cotton. Nypro announced April 7 that the work from Colorado will be transferred to its other plants, mainly its much larger automotive operation in Louisville, Ky., which is part of a joint venture with DJ Inc.
The closing comes while the company is eliminating about 30 jobs, including those of two unidentified vice presidents, and is cutting the pay of 100 executives in Clinton as much as 10 percent, for as long as three months, Cotton said. About half of the job cuts are in the company's custodial force, he said.
Cotton said the changes are being made to maintain profitability.
Nypro expects sales will rise to about $850 million in the fiscal year that ends June 30, from $808 million last year, he said.
The Longmont facility opened in 1995 doing entirely medical molding, but as that business left the plant, it became focused on automotive and wound up shipping about 80 percent of its products to auto plants as far away as 1,300 miles, Cotton said.
``One of the issues is shipping and the other issue is, we feel we can do a much better job centralizing that type of work,'' he said.
Nypro upgraded the Longmont plant early in 2003, adding some assembly and other secondary operations, but Cotton said customers wanted to bring the work closer to their plants.
``You run these plants with a pretty small number of customers, and when more than one change their needs at the same time, you can make some pretty sudden moves,'' he said.
While all the work at the Longmont plant will relocate to other Nypro factories, Cotton said it's not clear if all of the 20 presses will move.
He said the automotive market is continuing to grow for Nypro in North America, and the company wants to beef up its presence in that segment significantly.
In December, the company opened a small engineering and design office for the automotive market in Troy, Mich., providing office space for several employees who had worked out of their homes, Cotton said.
Automotive remains a relatively small business for Nypro. About $72 million of its $808 million in worldwide sales was to carmakers in the fiscal year ended June 30. The company said in 2000 that it would have almost $100 million in auto sales that year, but Cotton said that number may have included projects that Nypro no longer defines as automotive.
The firm's automotive business has grown since 2000, and has grown rapidly from the $72 million since June.
The company makes under-the-hood parts and parts for dashboard control systems, items that require precision molding and secondary capabilities like decorating or laser etching, Cotton said. Mainly it supplies parts to Tier 1 companies, but also deals directly with automakers in some cases, he said.