Japanese company reveals why it’s laying off 217 Charlotte-area workers, closing plant
A Japanese manufacturer revealed this week why it’s laying off 212 workers as it shutters a plant near Lake Norman.
Keystone Powdered Metal Co. makes metal components for car engines and transmissions, electric motors, power tools, HVAC systems and household appliances, according to its website.
Based in St. Marys, Pennsylvania, the company is a wholly owned subsidiary of Sumitomo Electric Industries, headquartered in Osaka, Japan.
Sumitomo Electric opened its Troutman plant in 1990 to produce car engine parts, Keystone human resource manager Carolyn Healy said.
The plant at 250 Old Murdock Road had a peak workforce of about 600, which dwindled this year to 250, Healy said. The plant is off Interstate 77 Exit 42 in Iredell County.
In a statement, Healy, who is based in Troutman, said the plant is closing because of “ongoing financial challenges and a lack of new opportunities for the products manufactured at the plant.”
Earlier this year, Keystone told employees and local officials about the planned closure. The company has worked closely with government agencies to support the employees, including through on-site job fairs with regional employers, job search assistance and help with resume writing and interview skills, Healy said.
All employees will be offered severance packages, she said.
“KPMC understands this is a difficult time for our employees and the community,” according to a company statement released by Healy this week. “We are dedicated to providing as much support as possible and will continue to work closely with all stakeholders to ensure a smooth transition.”
The plant will close on April 1, 2025, according to a Worker Adjustment and Retraining Notification Act notice that Healy sent to the North Carolina Department of Commerce.
Layoffs will start with 45 employees on Nov. 1, followed by 67 workers on Dec. 1, 33 on Feb. 1 and 72 on April 1, Healy said in the notice.
Keystone is a nearly century-old company that went through a merger two years ago. The company also has a satellite plant in the Sunbeam Industrial Complex in the Gaston County city of Cherryville.