Layoffs are scheduled to begin March 28. Affected employees will be able to apply for open positions at the company’s other locations in Southeast Michigan, the WARN letter said.
“After extensive review of our manufacturing footprint, US Farathane is transitioning operations from the Troy, Michigan facility to other USF sites,” the company said in a statement to Crain’s Detroit Business. “... This difficult decision was made in response to the competitive landscape that requires a more efficient manufacturing footprint and does not reflect the skill nor commitment of the USF team in Troy. Supporting our impacted colleagues through this transition is paramount for us, and we hope to see many of them apply for positions elsewhere in our company.”
US Farathane is No. 3 among North American injection molders with more than $1 billion in related sales in the region. It also has extrusion operations, coming in at No. 97 among pipe, profile and tubing makers.
The private equity-owned manufacturer announced in late 2023 it would close its Shelby Township plant in a consolidation move impacting 176 workers. At the time, the company said all impacted employees would have the ability to transfer to nearby locations.
US Farathane has 10 locations in Michigan, including the Troy plant, according to its website. It also has a pair of plants in Texas and one each in Tennessee and Missouri, as well as five plants in Mexico and China.
Small suppliers including plastic injection molders and tool & die makers have struggled in recent years as the pull of those industries to lower-cost countries increases. The automotive industry in general is grappling with slower demand globally and uncertainties over trade and energy policy.
US Farathane is owned by Connecticut-based private equity firm Atlas Holdings, which bought the company in 2023 from Gores Group, a Los Angeles-based PE firm founded by Alec Gores, brother of Detroit Pistons owner Tom Gores.