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Hino to Close Auto Parts Factory in Northeast Arkansas

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Toyota subsidiary Hino Motors announced that it’s closing its auto parts factory in Marion, a move that will affect 1,300 jobs.

In a memo to investors posted on Hino’s website, the company said the plant posted a $189 million operating loss for the fiscal year ending March 31. The company “concluded that recovering sustainable profitability is difficult, and thus have decided to withdraw from this business.”

The plant, which produces axles and other suspension components for certain Toyota vehicles, is scheduled to close by the end of 2027.

In a separate statement, Hino said the company will “realign its focus, prioritizing the core business of the company: commercial trucks.” The company said all employees will receive a severance package that includes bonus compensation, extended health care and outplacement services.

Davey Jung, president of Hino Motors Manufacturing USA Inc., said closing the plant was a “difficult choice.”

“We appreciate the strong contributions of our Arkansas team as well as the support extended to us by the city of Marion and the state of Arkansas over the years,” he said.

Hino began production at the $160 million plant at Marion’s Railport Industrial Park in 2006.

In 2013, Hino decided to locate its Toyota Business Unit operation in Marion, raising its investment in the plant to more than $280 million and increasing the number of major machines at the facility to more than 550.

The company expanded the plant by 110,000 SF to 563,000 SF for production of Toyota Tacoma rear axles and front knuckle assemblies, which began in 2017.

In a statement, Marion said the plant has played a “vital role” in the city’s economy.

“We extend our heartfelt thanks to the all the employees and management at Hino for their hard work and dedication,” the statement said. “The City of Marion is committed to supporting the affected employees during this transition and working towards creating new opportunities for growth and development in our community.”

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