Auto and appliance parts producer Hahn Elastomer Corp. is shutting down, according to a report in the Detroit Free Press.
Hahn extrudes and die cuts plastic and rubber at its headquarters plant in Plymouth and facilities in Jackson and Warren, Mich.
A total of 273 employees will lose their jobs, according to the report, which quoted from a letter from management to workers.
Hahn officials did not return calls the week of Aug. 9. Officials with Edgewater Capital Partners LP, a Chagrin Falls, Ohio, private equity firm that is a part owner of Hahn, also did not return calls.
Hahn began laying off workers in Jackson on July 30 and will continue the layoffs until Aug. 31, the Free Press reported. An official with United Auto Workers Local 62 said half of the 104 workers in Jackson already are gone.
Hahn acquired the Warren and Jackson facilities in 2000 when it bought Atrex Inc. and Plastigage Corp., respectively. About that time, Hahn was launching a coextruded thermoplastic elastomer foam seal for car hoods and windshields.
Firms supplying sealing systems face extreme price pressure, while they spend heavily on research and new manufacturing technologies, according to Joel Kopinsky, a principal with auto industry consulting firm ITB Group of Novi, Mich. The number of entrants has been increasing as thermoplastics replace rubber. Hahn was one company riding the trend toward thermoplastics, he said.
Two Hahn rivals, GDX Automotive Inc. and Cooper-Standard Automotive Group, were put up for sale earlier this year. GDX's owner, GenCorp Inc. of Sacramento, Calif., recently revealed it agreed to sell the business to New York investment firm Cerberus Capital Management LP.
A Cooper-Standard spokesman said the Findlay, Ohio-based company expects to make an announcement on the sale in the fall.