Schneider Electric will close its plant in Ontelaunee Township, lay off 231 workers and sell the property by the end of June.
“These changes are in response to Schneider Electric realigning the product portfolio to other sites in order to better meet customer needs,” the company said in a statement from its U.S. corporate office in Boston.
Products now made at the Ontelaunee plant, which the company refers to as its Leesport plant, will be moved to Schneider Electric’s facility in Seneca, S.C., according to a statement from Schneider spokesman Dave Smith. The plant opened in 2008.
Smith did not respond to follow-up questions from the Reading Eagle, but he told the Daily Journal in Seneca that it was too early to say whether Leesport workers would move to Seneca.
The 334,000-square-foot Seneca plant manufactures motor control centers and enclosed drives and starters used in applications ranging from technology for production lines and oil rigs to equipment in wastewater treatment plants.
An employee contacted at the Ontelaunee Township facility deferred all comment to Smith.
“It’s never a good thing when jobs are being lost in Berks County,” said Berks County commissioners Chairman Christian Y. Leinbach. “We want to make sure through our workforce development board that we’re doing everything we can to help anyone who is displaced. This affects the lives of individuals and families.”
Schneider’s roots trace back 181 years, when two brothers bought mines and forges in Le Creusot, France. Two years later, they created Schneider & Cie.
Already an armaments specialist, the company launched itself into the emerging electricity market in 1891.
Nearly a century later, it divested its steel and shipbuilding interests and began focusing solely on electricity.
It is now a nearly $30 billion company. It’s also a company that has been consolidating its operations in the past few years.
The Associated Press reported on Feb. 3 that the Schneider plant in Peru, Ind., about 85 miles north of Indianapolis, was closing and that 306 unionized workers would lose their jobs. That was in addition to some 120 jobs lost in the preceding couple of years, according to published reports.
The Kokomo Tribune reported that production from the Peru plant would be shifted to other states and to Mexico.
In a February earnings call with investors, Chairman and CEO Jean-Pascal Tricoire talked about the company’s 10-year quest to build its portfolio from 2003 to 2013, and how it has been consolidating its capability since then.
About Schneider Electric
Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructure and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management – Medium Voltage, Low Voltage and Secure Power, and in Automation Systems. We provide integrated efficiency solutions, combining energy, automation and software. In our global Ecosystem, we collaborate with the largest Partner, Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency. We believe that great people and partners make Schneider a great company and that our commitment to Innovation, Diversity and Sustainability ensures that Life Is On everywhere, for everyone and at every moment: schneider-electric.com
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