Hoover Precision Products Inc. (USA; a division of Tsubaki Nakashima, Japan;
privately held) announced it will be closing the Specialty Division
ball manufacturing plant in Erwin, Tennessee.
Confirming rumors spreading for the past several months, Hoover said Erwin
will close as of September 30, 2007. The plant currently employs approximately 80 people;
hourly workers are represented by United Steelworkers Local 5945.
Hoover cited excess U.S. production capacity, noting: "The decision is part of
the ongoing product restructuring
plan to reduce the company's exposure to the automotive market while focusing
our global resources on customers with long term growth."
The Erwin plant closing has an eerie level of Jungian synchronicity; its sister
plant, built at the same time in Ann Arbor, Michigan and now owned by NSK, is set
to be officially closed the same day.
Built in 1959, the 171,000 square foot Erwin plant, "was the foundation for
ball production in the automotive bearing market." Erwin was established
when the company was Hoover Ball and Bearing, so that ball production
could be centralized after a series of acquisitions, including Strom Steel Ball.
When ball production was moved to Erwin, a new Ann Arbor plant became dedicated
to manufacturing bearings. Hoover in Ann Arbor became a ball bearing manufacturing
joint venture with NSK in 1972, and was eventually sold to NSK in
1975. In 2005, NSK announced Ann Arbor would close by September 30, 2007.
article: NSK closing Ann Arbor bearing plant
Tsubaki Nakashima acquired the Hoover ball operations from Johnson Controls / Hoover Group
in 1990. Hoover's headquarters are in Cumming, Georgia.
Tsubaki Nakashima currently operates thirteen facilities in Japan; North
America; Puebla, Mexico; Debrecen, Hungary; China; and Poland.
In recent years, Erwin's focus has been on specialty
materials supporting numerous related markets, which have been gradually
losing market share to offshore competitors.
The plant's ball production included stainless; aluminum; bronze; chrome; k-monel;
S2 tool steel; ornamental (not heat treated); and burnishing, deburring and
grinding media.
Hoover said it has been letting Erwin product customers know if the balls they are
buying will be discontinued, or if production will be shifted to other plants.
While the company's U.S. headquarters is in Cumming, Georgia, it also has
U.S. plants in Cumming; East Granby, Connecticut; and Sault Ste. Marie, Michigan.