Johnson Controls Signs Agreement to Acquire Plant in Kentucky
18 May 1999
Johnson Controls Signs Agreement to Acquire Plant in Kentucky For Interior Component Manufacturing
Facility to supply visors, overhead consoles
for a variety of model-year 2000 vehicles
GLASGOW, Ky., May 17 -- Automotive interior supplier Johnson
Controls has signed a tentative agreement to acquire a
manufacturing facility in Glasgow, Kentucky operated by TechnoTrim -- a
Livonia, Michigan-based joint venture between Johnson Controls and Tachi-S of
Japan. The deal is expected to be finalized in June. Terms of the transaction
were not disclosed.
The 116,000-square-foot Glasgow facility, which manufactures automotive
seat trim covers for cars and trucks assembled in North America, was slated to
be closed by October 1 as part of a TechnoTrim consolidation plan announced
earlier this year.
"Johnson Controls has been exploring potential locations for an interiors
manufacturing facility in either Ohio, Kentucky or Tennessee for almost two
years," said John Arnold, vice president of interiors manufacturing for
Johnson Controls. "When we learned of the availability of the Glasgow
facility, and its workforce, we jumped at the opportunity to keep the facility
and its employees working. The Glasgow facility is centrally located to many
assembly operations of our automaker customers, and has a proven and
experienced work force."
Johnson Controls will convert the plant for interior component
manufacturing and launch production for model-year 2000 vehicles on August 1,
1999. Approximately 300 of the current Glasgow TechnoTrim plant employees --
including salaried and hourly workers -- will be offered the opportunity to
become full-time Johnson Controls employees.
Officials from both companies made the announcement today at a ceremony in
Glasgow attended by TechnoTrim and Johnson Controls executives, plant
employees, and local officials. Participants included Charles Honeycutt, mayor
of Glasgow; John Arnold, vice president of interiors manufacturing for Johnson
Controls Paul Elliott, vice president and general manager for TechnoTrim; and
Ken Luxton, the new plant manager of the Glasgow facility for Johnson
Controls.
The facility will manufacture automotive sun visors and overhead consoles
for model-year 2000 vehicles produced by two auto manufacturers in the United
States.
According to Arnold, Johnson Controls plans to retrain employees for light
assembly work, with several individuals being offered advanced training at
Johnson Controls operations in Holland, Michigan.
In a plant-closing announcement last March, Elliott said Glasgow employees
would have the opportunity to apply for positions at Johnson Controls, Tachi-S
and other TechnoTrim sites. TechnoTrim employees seeking new positions with
Johnson Controls in Glasgow will be interviewed during the next few weeks, to
be followed by selection and hiring.
"I'm extremely pleased with Johnson Controls' efforts to provide jobs for
many of our displaced employees," Elliott said.
The Glasgow plant opened in 1992 and currently manufactures seat trim
covers for vehicles produced by Ford, Mitsubishi and Nissan.
TechnoTrim has headquarters in Livonia, Michigan. It operates automotive
seat trim plants in Maysville, Kentucky; Stockton, California; and Mexico.
Tachi-S is a major supplier of complete seats and other automotive products
with facilities in North America, Europe and Asia.
The Plymouth, Michigan-based automotive business of Johnson Controls --
which employs more than 57,000 people at 275 facilities worldwide -- achieved
US$9.3 billion in sales for the 1998 fiscal year. In model-year 1999, it will
supply interior products for more than 22 million vehicles.
Johnson Controls is a global market leader in automotive systems and
facility management and control. For non-residential facilities, Johnson
Controls provides building control systems and services, energy management and
integrated facility management. Johnson Controls , founded in 1885,
has headquarters on Milwaukee, Wisconsin. Its sales for 1998 totaled US$12.6
billion.
NOTE TO EDITORS: For access to other Johnson Controls news releases and
additional company information, visit the company's site on the World Wide Web
at http://www.johnsoncontrols.com.
CONTACT: David Roznowski of Johnson Controls, 734-254-5632
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