Mold-components supplier D-M-E Co. will scale back its plant in Charlevoix, Mich., that makes ejector pins, ejector sleeves and core pins to focus on specialty products, a move that will cut about 35 jobs.
D-M-E announced the news Sept. 25, after officials told employees in Charlevoix. D-M-E, part of Milacron Inc., will notify affected employees within two to three weeks. Laid-off employees will be given severance packages and career transition help, the company said.
The plant will employ about 10 people, down from the 45 it employs today.
The streamlining is part of a restructuring by Cincinnati-based Milacron to save $15 million annually.
Milacron, which makes plastics processing machinery, D-M-E mold components and industrial fluids used in metalworking, is trying to return to profitability by 2007.
D-M-E is based in Madison Heights.
In 2007, the smaller workforce in Charlevoix will make only higher-value-added products - specialty ejector pins, ejector sleeves and core pins for injection molding. Standard products will be outsourced.
D-M-E also will continue to use the Charlevoix facility as a warehouse and distribution center.
``This is a difficult decision for everyone involved,'' D-M-E President David Lawrence said in a news release. ``But to ensure D-M-E remains a market leader, we have to be strategic about which products we manufacture ourselves and which we source from other providers. A number of the standard products manufactured in Charlevoix have reached commodity status. When products can be made elsewhere with the same reliability at less cost, it makes strategic sense for us to focus our manufacturing resources on higher-value products.''
D-M-E's six plants and 10 warehousing and distribution facilities in North America employ 329.