Cummins Turbo Technologies, a subsidiary of Cummins Inc. (NYSE: CMI), announced today that it will consolidate its turbocharger operations in Charleston into a single facility over the next 18 months. Currently, Cummins Turbo Technologies produces turbochargers for a range of diesel engines at two facilities in the Charleston area, which together employ approximately 530 people.
Under the plan announced today, Cummins will phase out its turbocharger manufacturing operation at Leeds Avenue while at the same time expanding operations at its facility in the Palmetto Industrial Park in Ladson, which the company opened in 2006. The Leeds Avenue facility also houses the Cummins Mercruiser Diesel and Cummins Marine engine manufacturing operations, which will remain at that location.
"Consolidating our two Charleston area operations into a single location will allow us to become more efficient and is consistent with Cummins’ strategy of being a low-cost producer in all its businesses," said Cummins Turbo Technologies President Jim Lyons. "This move will reduce the complexity of our operations and allow us to better serve our customers around the world."
Today’s announcement will not result in any immediate changes in Cummins Turbo Technologies’ employee levels in the area, but some reductions are expected later in 2009 and in 2010 as the transition to the single location progresses. A number of employees will move from Leeds to Palmetto, and all employees will be given ample notice of the redeployment schedule and of any reductions that occur as a result of the consolidation.
As part of the consolidation, the Palmetto site will be expanded by more than 83,000 square feet to accommodate an additional assembly line, bringing the total size of the facility to more than 207,000 square feet. The transition to the Palmetto site is expected to be completed by the end September 2010.