Post pre-buy downturn spurs layoffs at Holland

| Thursday, September 19, 2002

The Holland Group Inc., a component manufacturer for heavy-duty trucks, announced it will cease manufacturing operations and lay off 44 workers at its tractor parts plant in Denmark, SC. Plant employees were informed of the company's decision, which is expected to go into effect about a month before Christmas.

"We are deeply saddened by the impact this decision will have on our Denmark employees," said Timothy Hemingway, president of Holland USA. The Denmark facility began as a new plant in 1964 and has been a major employer in the region.In addition, the company said it is reviewing its component parts distribution activities at the plant.

"It is likely these activities will be discontinued also, but distribution is projected to continue until at least April 1, 2003," the company said in a statement.

Hemingway said the forecast for new tractor production during 2003 has been revised downward, following an up-turn in business driven by the pre-buy of non-mandated diesel engines.

"This will affect production levels at all tractor OEMs, especially those in the Southeast," Hemingway said. "Unfortunately, the present and forecasted market conditions force us to consolidate heavy transportation component part manufacturing in fewer locations."

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