SAF-Holland to shutter plants in Holland, Muskegon

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HOLLAND, Mich. (WOOD) — SAF-Holland is shutting down two of its manufacturing plants in West Michigan as part of restructuring efforts.

The truck and trailer parts supplier blamed “continued market weakness” for its decision to shut down the Muskegon and Holland plants.

In a news release posted to the company’s website this week, SAF-Holland said the cuts will allow it to remain competitive long-term in North America amid the market changes.

However, SAF-Holland is not moving out of Muskegon. The company says it plans to use the site for its Americas region headquarters and corporate offices. SAF-Holland also plans to build a cutting-edge engineering and technology center in Muskegon and consolidate Holland’s testing center and administrative offices there.

Production work normally handled by the Muskegon and Holland plants will be moved to the company’s three other sites in Cincinnati, Ohio; Dumas, Arkansas; and Wylie, Texas. SAF-Holland says its major customers are closer to those locations, improving delivery and response times. The company plans to invest $3 million it its remaining locations.

Around 97 employees at the Holland plant are expected to lose their jobs as early as May. It’s unclear how many workers will be affected by the cuts at the Muskegon plant.

The layoffs are expected to be completed by Oct. 31. SAF-Holland says severance payments will be part of the restructuring plan’s $10 million cost.

SAF-Holland expects to roll out the changes over 18 months.

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