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Superior Industries to Cut 250 Jobs at Fayetteville Plant

3 min read

Superior Industries International of Southfield, Michigan, which makes aluminum wheels for automobiles, is cutting its Arkansas workforce again, this time chopping 250 jobs at its Fayetteville plant.

The Northwest Arkansas Democrat-Gazette first reported the move, saying the action will take place between Nov. 16 and June 1.

The company said 35 salaried engineers and subject matter experts will remain employed at the plant. Superior’s technical center, parts distribution and clear coating operation will also continue there.

More: Read Superior’s letter to employees (Page 2 is in English).

In a letter to employees, Rick Quinlan, the plant’s director of operations, said the plant “has not operated at capacity nor has it won meaningful business awards for several years.” He also cited “many industry and competitive headwinds.”

“This was a difficult decision that we did not take lightly, but ultimately, we determined that it was a necessary change,” Quinlan wrote. “We believe this move helps position our company to remain a competitive global wheel supplier.”

The Fayetteville plant opened in 1986. 

Steve Clark, president and CEO of the Fayetteville Chamber of Commerce, told Arkansas Business that the chamber will work to help the employees who are losing their jobs. He said layoffs like these happen because of “competitive market pressures.” 

“I’ve been in this job [for] 11 years, and, for 11 years, we’ve worked with them about whether they would close this plant, simply because they moved a number of plants to Mexico,” Clark said. “They’ve been a great corporate employer. We hate to see this happen. They’re leaving a few people on, I understand, some engineers and others. 

“But Superior is part of the fabric of Fayetteville, so if they want to come home a year from now, or five years from now, or 10 years from now, they’re welcome back.”

Clark said Superior would not be among the city’s 10 biggest employers. He said he thinks the 250 workers could be absorbed by other employers throughout the region.

In the letter, Quinlan said the company would share details about severance packages next week. He said the company is working with the Arkansas Business Retention and Workforce Transition Team on what training might be available to former employees.

“We are optimistic that the strong economy in northwest Arkansas will present other opportunities for many of our talented employees,” he wrote.

In 2014, Superior announced it would close its manufacturing plant in Rogers, eliminating 500 jobs. At the time, the publicly traded company said the move was part of an “initiative to reduce costs and enhance its global competitive position.”

The company shifted production from its 268,000-SF office-warehouse facility in Rogers to its other facilities, including in Fayetteville and Chihuahua, Mexico.

Superior has noted production, revenue and profit declines in its recent earnings reports. In August, its reported second-quarter revenue of $352.5 million, down $36.5 million from the same time last year.

In its earnings news release, CEO Majdi Abulaban said that, in light of “persistent volume weakness,” the company was taking action “to right size costs, including aligning our production capacity, and managing working capital and capital investments in the current environment.”

Earlier this month, Superior suspended its quarterly dividend, setting aside about $11 million in cash to “reinvest in the business” and cut debt.

The company does not plan to sell any real estate in Fayetteville as a result of the downsizing. 

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