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Elkhart company's restructuring plan affects 230 jobs

CTS Corporation announced Friday it will phase out production at its Elkhart plant by mid-2018, which will affect approximately 230 jobs, according to a press release from the company.

The story was first reported by our reporting partners, The Elkhart Truth.

Employees told The Elkhart Truth the manufacturing work will move to low wage countries like Mexico or China.

The existing location will become a research and development center, according to the press release.

The company says approximately 230 employees will be impacted by the transition.

CTS says it met with employees who would be affected.

“We are committed to the fair and respectful treatment of all employees throughout this difficult transition process,” CTS CEO Kieran O’Sullivan said in the press release. “We believe that these changes are in the best interest of our company, our customers and our shareholders over the long term.”

CTS designs and manufactures sensors, actuators and electronic components used in multiple industries.

Here is the full press release from CTS:

CTS Announces Restructuring Plans

Elkhart, Ind. Location to Transition into Research & Development Center

ELKHART, Ind.--As part of a corporate-wide simplification strategy unveiled in 2013, CTS Corporation announced today that it will implement additional organizational changes in North America.

Starting next year, CTS will phase out production at its Elkhart plant by mid-2018 and transition the existing location into a Research and Development Center supporting the company’s global operations. Certain actions are also being taken at other locations to simplify operations. Approximately 230 employees will be impacted over the course of the transition.

CTS met with impacted employees today and remains committed to working diligently with union representatives, elected officials and civic leaders to identify opportunities for outplacement and retraining for the affected employees.

“We are committed to the fair and respectful treatment of all employees throughout this difficult transition process,” CTS CEO Kieran O’Sullivan said. “We believe that these changes are in the best interest of our company, our customers and our shareholders over the long term.”

The R&D team in Elkhart will remain dedicated to leading the advancement of CTS’ next generation products for automotive customers. “We value our partnerships with the local community, our relationships with civic and business leaders and, most importantly, our employees’ shared desire to innovate in Elkhart for more than 110 years,” O’Sullivan said. “We look forward to continuing the commitment to excellence and innovation as the facility focuses on Research and Development.”

About CTS
CTS is a leading designer and manufacturer of sensors, actuators and electronic components to OEMs in the aerospace, communications, defense, industrial, information technology, medical and transportation markets. CTS manufactures products in North America, Europe and Asia.
 

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