Equipment manufacturer Coperion K-Tron will close its manufacturing facility in Salina, Kan., by the end of the year and lay off 98 employees as part of a plan to streamline North American operations. The facility provides bulk material handling, feeding and pneumatic conveying equipment and systems for the plastics industry and chemical and pharmaceutical markets.
The work will be moved in the coming months to facilities in Whitewater, Wis.; Sabetha, Kansas; and Kansas City, Mo., which manufacture similar products and have the capacity to handle larger volumes, according to a Coperion news release. The Whitewater and Kansas City facilities also are equipped with test centers and offer customer trials.
This action is the latest in Coperion's transformation over the past two years, which has included the addition of premier brands and products to its technology suite, enabling the company to offer enhanced solutions to customers, Coperion President Ulrich Bartel said in a Jan. 24 news release.
"I am confident that streamlining our U.S. operations will enable us to strengthen our support for customers in the Americas and allow us to uphold our commitment to delivering high-quality, innovative solutions," Bartel said.
In Salina, the layoffs will begin March 27, and most will be completed by June 30, but some employees will stay on through the end of 2025.
"This closure is expected to be permanent and will affect all employees, with the exception of approximately 50 roles, mostly in engineering and sales, which will be transitioned to remote work roles," Mike Gregozeski, general manager of the facility, told Kansas officials.
Gregozeski announced the planned action Jan. 22 in a Worker Adjustment and Retraining Notification statement to the Kansas Dislocated Worker Unit and Salina Mayor Greg Lenkiewiez.
The jobs being eliminated include about 45 positions in production and 17 in engineering in addition to managers and warehouse staff. Because the facility is closing, affected employees won't have any bumping rights, Gregozeski said.
Coperion K-Tron was formed in 2013 by owner Hillenbrand Inc. by merging K-Tron, which it acquired in 2010, with Coperion, which it acquired in 2012.
In 2024, Batesville, Ind.-based Hillenbrand officials accelerated a cost-cutting plan, partly to offset sluggish sales and a lower starting backlog.
"While we are cautious in our near-term revenue outlook, we are committed to controlling what we can through innovation, continued cost discipline and driving operational efficiencies across the enterprise to better position us for success once end market demand recovers," Hillenbrand President and CEO Kim Ryan said ahead of a Nov. 13, 2024, conference call.
Hillenbrand's outlook for 2025 calls for total company sales of about $2.93 billion to $3.09 billion, which is down 3-8 percent.