Die casting manufacturer Pace Industries LLC plans to close two plants in Michigan and lay off 244 employees due to “financial trouble.”
The permanent layoffs at the factories in Muskegon, Mich., will start Dec. 20 and be complete by the end of the year, according to a WARN notice filed to the state. Employees are not represented by a union.
Pace spokeswoman Sarah Jose said the closures are a function of “current market dynamics” and the company’s focus on “efficient management of capital investment and deployment of resources.”
“After careful consideration, Pace Industries has decided to close two of its facilities in Muskegon, Michigan,” Jose said in an email. “This decision does not reflect any lack of dedication from the talented Muskegon team. “The company is proactively working to support impacted associates as much as possible and is otherwise operating as usual.”
Pace has four manufacturing locations in the Muskegon area, according to its website.
The layoffs are the latest for a manufacturing sector that has been hit hard by inflation and supply chain troubles over the past two years. Several small manufacturers and local tool-and-die shops have filed for bankruptcy protection amid the pressure.
Last year, Pace moved its headquarters from Arkansas to suburban Detroit, where it added 60 administrative jobs. The move followed the company’s voluntary filing for Chapter 11 bankruptcy in 2020, which it said was a result of the COVID-19 pandemic stunting its supply chain.
Pace die casts aluminum, zinc and magnesium parts for automakers, tier one suppliers and aftermarket companies. Its customers include Whirlpool Corp., Harley-Davidson Inc. and Weber Inc.
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