Sensata Technologies Holding N.V. is shifting production of all tire pressure monitoring system (TPMS) components for the Americas from the former Schrader plant in Springfield, Tenn., to Mexico and China.
TPMS production will be moved to plants in Aguascalientes, Mexico, and Changzhou, China, by the end of 2017.
The potential to gain economies of scale and efficiencies are behind the move, according to a statement released by the company: “Against the backdrop of a challenging and increasingly competitive environment, consolidation of production in a larger Sensata facility will provide economies of scale and efficiencies that will enable Sensata to continue to meet customers’ quality, delivery and price requirements.”
Sensata also said the decision “was not taken lightly and included extensive deliberation and analysis.”
Employees will be eligible for separation benefits and career transition assistance. “I would like to underscore that this move was in no way a reflection of the quality of the Springfield workforce,” says Alexia Taxiarchos, global communications director. “We are petitioning for local and national support and are doing everything that we can to assist impacted employees.”
In Oct. 2014, Sensata completed the acquisition of TPMS manufacturer Schrader International Inc. from private equity firm Madison Dearborn Partners LLC for $1 billion.
Schrader is headquartered in Denver, Colo. Sensata is based in in Alemelo, Netherlands, and is a global provider of sensing, electrical protection, control and power management solutions. For more information, visit www.sensata.com.