Yorozu shutting down at Ceres

Published 12:00 am Thursday, October 2, 2008

Yorozu Automotive Mississippi will close its Warren County facility in mid-December in what plant officials are calling a temporary work stoppage, according to a release this morning.

Announcing the move “with deep regret,” plant officials cited continually declining sales of the vehicles for which it supplies parts.

“Over the last 24 months, Yorozu Automotive Mississippi has experienced a continuing erosion of its sales revenue,” vice president of operations John Lanier said in a statement.

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Its Vicksburg plant in Ceres Research and Industrial Interplex at Flowers produces suspension parts for the Titan, Armada and Quest models for Nissan, as well as the Chevrolet Colorado and Canyon pickups for General Motors’ plant in Shreveport.

Both the GM plant and Nissan’s plant in Canton have reduced production of vehicles from two shifts to one, Lanier said, adding an unfavorable sales forecast for fiscal 2009 added to a “very difficult” decision.

At one time, Yorozu, completed in 2003, employed up to 320 alongside another Tier 1 supplier, CalsonicKansei. In February 2007, CalsonicKansei closed its Ceres plant, which had employed about 245 people, citing a “corporate redesign.”

“At this time we are considering the closure as temporary. The decision of the future status of the plant will be made when there is a clear understanding of future opportunities at the Canton and Shreveport facilities,” Lanier said.

Production under way locally will be moved to the company’s plant in Morrison, Tenn. All 73 remaining employees will be given the option of moving to that plant or the company’s Battle Creek, Mich., facility. The plant had already been downsizing from its peak.

Though unclear in the release, local economic development officials indicated the shutdown will include all upper-level management and shift supervisors.

“We’re working with the (WIN) job center for the employees,” Chamber of Commerce executive director Christi Kilroy said. “They’ve been very concerned about their employees during this time. They have a lot of pride in what they do.

At least for the short term, the announcement reduces the number of industries at Ceres to three, Tyson’s, Vicksburg Metal and Magnolia Metal & Plastic. Additional space there is occupied by Entergy Mississippi, the Mississippi Department of Transportation and the Mississippi National Guard.

At one time, Yorozu, completed in 2003, employed up to 320 alongside another Tier 1 supplier, CalsonicKansei. In February 2007, CalsonicKansei closed its Ceres plant, which had employed about 245 people, citing a “corporate redesign.”

“It’s very unfortunate,” Warren County Port Commission executive director Wayne Mansfield, who said he is confident the company will re-establish the plant once economic conditions improve.

“Yorozu is an exceptional company and a good corporate citizen to Warren County,” Mansfield said. “It’s not a decision they wanted to make, I can guarantee you.”