May 25 2004
Alcoa today announced that its Alcoa Fujikura Ltd. (AFL) Automotive operations will reorganize its operations in Piedras Negras and Torreon, Coahuila, Mexico. This adjustment is necessary to maintain the competitiveness in the markets in which the company operates as a result of reduced production. This restructuring will happen in June of this year, resulting in the permanent reduction of approximately 1,300 positions in Torreon and 1,050 positions in Piedras Negras.
The operations of AFL Automotive in Mexico employ approximately 24,000 associates (4,464 in Piedras Negras and 4,139 in Torreon), and produce, and distribute electrical distribution systems and other products for the North American light and heavy vehicle markets.
Jose Alvarado, AFL Automotive - Mexico Vice-President, said, "This difficult decision is the result of the competitive conditions of the global market, and the actions in Piedras Negras and Torreon are necessary to adjust AFL capacity to better match demand."
AFL Automotive recognizes the impact that this workforce reduction will have on the lives of its employees, their families, and the community at large. Full severance, in addition to a combination of outplacement and transition support services, will be made available to all affected employees.
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