Continental closing Elkhart manufacturing plant-WEB ONLY

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An Elkhart manufacturing plant slated for partial closure last year will be shuttered on a permanent basis due to “adverse business conditions,” according to a notice filed with the state late last week.

Michigan-based Continental Automotive Systems US Inc. said it will close the 119-employee electrical systems plant beginning March 31; it will stagger the layoffs through March 2010.

The company said it expects 91 hourly and salaried workers to lose their jobs. The remainder will be transferred to other Continental locations.

Continental bought the plant in 2007 from Siemens VDO Automotive Corp., which already had announced plans to shut down its assembly and molding operations.

The Elkhart-Goshen area already has the state’s highest unemployment rate at
15.3 percent – a whopping 10.6 percentage points higher than December 2007. Thousands of workers have lost their jobs at the recreational vehicle industry has been hit hard by the economic downturn.

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