Kovalus Separation Solutions Will Lay Off 80 Workers as it Closes its Manufacturing Facility, a Move that Follows the Announcement of a New Plant in Mexico.
In a significant development for the agribusiness and technology sectors, Kovalus Separation Solutions has announced the closure of its manufacturing facility in Wilmington, Massachusetts. The company, which specializes in filtration technology for the dairy and life sciences industries, will lay off 80 employees as part of the shutdown. According to a state-filed notice, the layoffs will go into effect between October 15 and December 1, marking a major shift for the company’s US operations.
Kovalus, formerly known as Koch Separation Solutions, produces equipment used in a variety of applications, from cheesemaking to wastewater treatment. This move comes as a surprise to many in the international dairy community given the company’s long history and the fact that its corporate headquarters are located at the same Wilmington address. The article notes that while the manufacturing facility will close, there was no mention of the corporate headquarters also being shuttered.
The decision to close the Massachusetts plant follows a major announcement the company made in June 2024. As a key piece of data journalism, the article notes that Kovalus had revealed plans to build a $20 million assembly factory in Mexico. At the time of that announcement, the company had stated that all of its manufacturing operations would remain in Wilmington, making the recent closure a clear reversal of its previously stated intentions.
For the affected employees, the company’s Workers Adjustment Retraining Notice (WARN) filing offered a small degree of information. It stated that some employees may be asked to remain for up to 60 days after the facility officially closes to assist with final tasks. While the company did not immediately respond to requests for comment, the notice provides a clear timeline for the facility’s shutdown and the subsequent job losses.
This situation provides a powerful case study for dairy economics and the broader manufacturing industry, highlighting the complex factors that influence corporate decisions, including globalization and supply chain strategy. The closure of a US manufacturing plant in favor of a new facility abroad demonstrates the challenges of a competitive global market. It also serves as a reminder for professionals in the sector to monitor the ongoing shifts in corporate strategy that can impact local economies and skilled labor.
Source: MassLive, Dairy tech company to close Mass. manufacturing facility, lay off 80 workers
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
