The closing of a York County factory, announced yesterday, stems from a decision by its corporate parent to consolidate U.S. manufacturing operations in Oklahoma, company officials told CPBJ.
The Kelvion Inc. plant in East Manchester Township makes industrial brazed plate heat exchangers and related equipment. Its scheduled shutdown this summer was first reported Tuesday by the Business Journal.
A company official on Wednesday morning responded to explain more about the move.
About 70 people will be affected said Neil Swift, Kelvion’s executive vice president for North America, although “there are a number of people being offered relocation packages to Tulsa,” he added.
The York plant, which was opened in 2007, will be closed by September, with layoffs beginning as early as June 30.
In conjunction with the move, Kelvion will open a sales office in York and another in Houston to be closer to key customers in the Gulf region.
Kelvion’s corporate parent, Kelvion Holding GmbH, is based in Germany and employs about 4,500 staff worldwide.
According to a corporate statement provided by Swift, the York-Tulsa move is part of “Kelvion 2020,” a reorganization program launched in October.
Under that plan, Kelvion first looked at its German operations. The second phase was an analysis of strengths and weaknesses at Kelvion sites worldwide, with the U.S. changes based on the outcome of that analysis, the statement indicated.
Consolidation of U.S. manufacturing will allow the company to expand its production and offer more products to the American market, the company said.
The local operation traces its roots to a former York company, FlatPlate Inc., which was acquired by GEA Group AG of Germany in 2006.
Kelvion was formed from GEA’s heat exchanger group in 2015.