Cummins Filtration to Exit Business in Waynesboro, Ga.
- Georgia Manufacturing Facility to Close in June -
NASHVILLE, Tenn.--(BUSINESS WIRE)--
Cummins Filtration, a division of Cummins Inc. (NYSE:CMI), announced today that it plans to exit the manufacturing facility in Waynesboro, Ga., by June.
The Waynesboro facility employs approximately 250 full-time permanent employees and 80 temporary workers. All workers will be offered retention bonuses as an incentive to stay until production is completed. Permanent employees will receive a competitive severance package based on their length of service, in addition to outplacement assistance.
"We are extremely disappointed to have to take these steps," said Cummins Filtration President Pamela Carter. "Our actions today are in no way a reflection of the performance or commitment of our employees in Waynesboro and throughout the Small Engine and Recreational Vehicle (SERV) business, who have worked hard to turn this business around. Given the continued losses in this segment and little prospect for improvement, however, this is the right decision for the future success of Cummins Filtration."
The Waynesboro facility, opened in 2003, produces exhaust systems and structural frame components for small engine applications such as lawn and garden equipment and all-terrain vehicles. It is the only Cummins Filtration facility devoted solely to SERV products.
The segment has remained unprofitable for the past three years, despite a significant investment of people and resources into the business. All current supply agreements will be honored and the Company will work with customers to help with the transition to new suppliers. Cummins Filtration also is committed to maintaining its facility in Waynesboro as it actively pursues a buyer.
About Cummins Filtration
Cummins Filtration Inc. is a wholly owned business unit of Cummins Inc. and the world's leading designer and manufacturer of air, fuel, hydraulic and lube filtration, chemicals and exhaust system technology products for diesel and gas powered equipment. Cummins Filtration cares about maintaining a cleaner, healthier, and safer environment. Going beyond compliance, Cummins Filtration proactively seeks improvements to products and processes and offers environmentally friendlier product choices for all major engine systems. The company's homepage can be found at www.cumminsfiltration.com.
About Cummins Inc.
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $715 million on sales of $11.4 billion in 2006. Press releases can be found on the Web at www.cummins.com.
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.
Source: Cummins Inc.
Released May 4, 2007