KS Gleitlager GmbH, the Plain Bearing Division of Kolbenschmidt Pierburg AG (Dusseldorf, Germany) is closing its Greensburg, Indiana bearing factory and moving the operations to Fountain Inn, South Carolina.

Approximately 150 people will lose their jobs over the next six to nine months as the operation is transferred to Fountain Inn. Due to the cost of moving them, the much smaller Cast and Aluminum operations will remain in Greensburg - together, they employ fewer than 25 people.

The KS Gleitlager Plain Bearing Division has approximately 1,000 employees worldwide. The division's other plants are in St. Leon-Rot and Papenburg, Germany, and Nova Odessa, Brazil. 2000 sales were approximately 151 million Euros (USD $140 million). The division's U.S. operation has yearly sales of approximately $15 million, primarily automotive engine bearings for General Motors.

The company is a major manufacturer of plain journal bearings, bushings, thrust washers, and steel-plastic composite bearings, while the parent Kolbenschmidt Pierburg AG is a world leader in cast and continuous cast products, including engine blocks and pistons. Kolbenschmidt employs approximately 12,000 people worldwide.

Gleitlager's new Fountain Inn facilities in the South Chase Industrial Park will cost approximately $11 million and employ 70 people. It is expected to be on line by early 2002.

Kolbenschmidt Managing Director, Klaus-Jurgen Hedden, said, "The Greensburg plant has not been profitable for a number of years. We considered options that might allow the plant to generate a profit, including considering input from the UAW. After having considered these options, we have determined that transferring these production lines will result in a more effective use of resources and capital and will better position our company to be competitive in the world marketplace."