A large manufacturing company that employs over 600 people is closing its Dayton-area plant.
Tenneco announced Thursday it intends to shutter its shock absorber manufacturing facility in Kettering. The nearly one million-square-foot plant, which currently employs 648 people, is expected to completely close before the end of 2023.
“This difficult decision is part of the company’s need to realign its manufacturing footprint to respond to changing market conditions and capacity requirements,” Tenneco stated in an email to the Dayton Business Journal. “The North America conventional shock market has significant over-capacity. Adjusting the size of its operations to match the current market demand, as well as what is anticipated in the future, is necessary to strengthen Tenneco’s long-term sustainability in the North America shock market.”
The company added it has “a great team in Kettering,” and that it recognizes the impact this action will have on its employees, who are represented by a union.
“We will work to provide transition assistance for all affected team members, including some opportunities to transfer to other Tenneco locations,” Tenneco stated. “The company and union will be meeting in the coming weeks to bargain on these topics.”
Kettering City Manager Mark Schwieterman said Tenneco called Thursday morning to notify them of the closure. When asked if the city is attempting to negotiate with Tenneco to avoid the closure, Schwieterman said they did not have much discussion about what could be done to keep them in Kettering.
“The information given to us is really about a capacity situation,” Schwieterman said. “They have excess capacity for manufacturing, and the capacity for the market they serve is over capacity, so they can meet their demands without the Kettering plant.”
Schwieterman said Tenneco plans to continue operating at the Kettering facility until it closes at the end of 2023.
The closure deals a big blow to the city of Kettering, as Tenneco was one of its 20 largest employers. Schwieterman acknowledged the city’s tax base will take a hit, but he said they are mainly thinking of the workers who will be affected by the company’s decision to close.
“The city of Kettering, Montgomery County and the state of Ohio will all work together to do what we can to assist people that are impacted by this decision,” he said. “Our concerns go out to the families that work there.”
Schwieterman said the closure of the Tenneco plant could present an opportunity to bring in another large end user to the 940,000-square-foot facility, which would hopefully fill some or all of the jobs that were lost.
“We’re a resilient community, and we’ll work with Tenneco and the landlord to make the best out of this situation and prepare ourselves for redevelopment of that site once Tenneco leaves,” he said. “This will give us an opportunity, once again, to prove we can attract jobs to the region.”
Kettering Mayor Donald Patterson said the city “always had a good relationship with Tenneco,” so they were “shocked and sad” to learn of their plan to leave the city.
“Our hearts go out to the employees who will be impacted over the next 24 months, and we are working to prioritize and put plans in place to make sure those people are provided the assistance they need to find new jobs,” Patterson said. “We have solid relationships with state and county agencies that will assist the employees, and we have talented people working to bring new businesses and jobs to Kettering. We have proven time and again that relationships lead to resiliency. This occasion is no different. We will do our utmost for the impacted employees and to welcome new opportunities for the continued health of our city.”
Julie Sullivan, executive vice president of regional development for the Dayton Development Coalition, said “our hearts go out to the employees and their families affected by today’s announcement.”
“While today’s news is difficult, I am confident these individuals will find new opportunities in our region,” Sullivan said. “They have highly valuable skills, and we and our workforce development partners will help them connect to new employers. We will work closely with our partners in Kettering and the building ownership to market the facility to new users. This is an excellent heavy industrial facility and we don’t have enough of this type of site in our region or across the state.”
Tenneco came to Kettering in 2008 when it purchased the former Delphi Corp. plant. It initially employed 400 people, but over the years the company made significant investments in the plant that led to additional jobs, capacity and equipment. In 2018, Tenneco announced a $61 million investment and 300 new jobs in Kettering as part of its plan to make the site a “center of excellence” for shock absorbers and other component parts.
Since arriving in Kettering, Tenneco has consistently been listed among the region’s top employers and manufacturers, according to DBJ research.
Lake Forest, Illinois-based Tenneco designs, manufactures and markets automotive products for original equipment and aftermarket customers. In 2020, its revenue was $15.4 billion and it employed 73,000 people, though that number will decrease with the closure of the Kettering plant. Despite the closure, Tenneco still has around 270 sites worldwide.
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