Parker Hannifin plans to consolidate a number of internal divisions, close 2 facilities and expand its Mexican operations, according to an internally distributed letter from Andy Ross, Parker’s engineered materials group president.
The company has confirmed the letter was authentic, but has not disclosed how many employees will be affected by the new plans or explanded upon these plans.
According to the letter, obtained by Rubber & Plastics News, Mayfield Heights, Ohio-based Parker will integrate its TechSeal division into its O-Ring division, its Integrated Sealing System division into its Engineered Seals division and its Medical Systems Division into its Composite Sealing division.
Facilities in Anaheim and Fontana, Calif. will also be closed in the next 18 months, the company said. In addition, its Atlanta service center will be consolidated into its remaining service centers.
“A challenge that we face as part of these actions is that many of our friends and colleagues have been directly impacted,” said Ross in the internal letter. “The actions taken are being implemented to drive business simplification and improve results and are not a reflection on anything our impacted teammates have done. We have done everything possible to treat the people impacted by these actions fairly and with the dignity and respect they deserve. We will continue to use our resources to assist people as they transition into a new phase in their lives.”
Ross said the group would also be making “changes to the Black Book and Win Certification processes, implementing a new ‘Voice of the Customer’ program and simplifying product charters.”
The company will be expanding its manufacturing in Tijuana, Mexico, adding a new 240,000-square-foot facility that will combine silicone, organic elastomer, thermoplastic moldeded products and assemblies into one certified facility.
The expansion will include 4 ISO Class 7 and Class 8 clean rooms and is slated to be operational by the end of 2016.
“The new facility in Baja will provide Parker with the ability to combine our molding technologies and assembly capabilities from two separate locations into one vertically integrated facility that focuses on the design and manufacturing needs of the medical market,” said Anthony Gangitano, Parker’s medical systems business unit operations manager.