HUNTSVILLE, Ala. (WHNT) - Navistar International Corporation announced Thursday that they will move mid-range engine production at its Huntsville plant to Melrose Park, Ill. The company's other plant will remain in Huntsville.
The consolidation will affect 280 workers.
Employees inside the plant gathered to get the bad news Thursday afternoon and have been told to expect the closure to happen by this summer at the latest.
"As we have stated previously, we have too much excess engine manufacturing capacity in North America and we must take action to reduce our costs and improve the business," said Jack Allen, Navistar chief operating officer. "The consolidation will further lower the company's breakeven point, strengthen our competitiveness in the marketplace and help position Navistar for a return to profitability."
"Ending production at a facility is a difficult decision because of its impact on the many great people who've been part of our company," Allen said. "We understand that these decisions have an impact on our employees and the community and we will treat our people with dignity and respect throughout this process."
Navistar will continue to build its 13-liter engine at its Huntsville big bore engine plant.