The Holland Group Inc. said Wednesday that market conditions will force the company to cease manufacturing operations
at its tractor parts manufacturing plant in Denmark, S.C.
The facility is part of Holland USA Inc., the operating company for Holland's U.S. operations.
The end of manufacturing operations will lead to the elimination of 44 office and production positions and is expected to be complete by late November. Employees at the plant have already been informed of the company's decision.
The company is undergoing a review of component parts distribution activities at the plant. It is likely that these activities will be discontinued also, but distribution is projected to continue until at least April 1, 2003.
"Over the past two years, everyone at Holland USA has worked very hard to overcome a severe market downturn," said Timothy Hemingway, president of Holland USA. "After an upturn in business driven by the pre-buy of non-mandate diesel engines, the downward trend will continue and the forecast for new tractor production during 2003 has been revised downward. This will affect production levels at all tractor OE's, especially those in the Southeast," Hemingway said.
"Unfortunately, the present and forecasted market conditions force us to consolidate heavy transportation component part manufacturing in fewer locations. Like many companies in our industry, we have to taken action to bring our cost structure in line with current reality."
The Denmark facility began as a new plant in 1964 under the name of the Holland Atlantic Hitch Co. The plant has operated continuously since then and has been a major employer in the region. The primary product produced at the plant is fifth wheels for tractors; the facility has been involved in marshalling and line sequencing activities for major OE tractor manufacturers in the region.
With the cessation of manufacturing at the facility, fifth wheels will continue to be manufactured at other company facilities.