Otscon, Inc., a leading manufacturer of parking brakes for the automobile industry, has announced the closure of its Columbia facility after 36 years of operation. The decision follows the company’s protracted financial recovery after the COVID-19 pandemic and challenging global economic conditions that have significantly impacted the automotive industry.
Since its establishment in Columbia in 1988, Otscon has been a cornerstone of the local economy, providing employment opportunities and contributing to the community. However, the company has faced unprecedented challenges in recent years, including fluctuations in market demand, supply chain disruptions, and increasing operational costs.
“After careful consideration and evaluation of various factors, including the evolving economic landscape and industry dynamics, we have made the difficult decision to cease operations at our Columbia facility,” said Hidefumi Sato, President of Otscon, Inc. “This decision was not taken lightly, and we are deeply saddened by the impact it will have on our employees, their families, and the community.”
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The closure of the Columbia facility will affect over 220 employees, including over 150 Otscon full-time employees. To assist with their transition, they will be provided with severance packages and outplacement support. Otscon is committed to ensuring a smooth wind-down process and will work closely with employees, suppliers, and local authorities throughout the closure process.
“While this decision is necessary for the long-term sustainability of our business, we recognize the significance of our presence in Columbia and the contributions of our dedicated employees over the years,” added Sato. “We extend our heartfelt gratitude to our employees, customers, suppliers, and the Columbia community for their support and partnership throughout our journey.”
Otscon, Inc. remains committed to serving its customers and will continue operations at its other facilities. The company will focus on optimizing its resources and strengthening its position in the global market amidst ongoing economic challenges.
For more information, please contact Media Relations Otscon, Inc. Phone: (573) 474-7066 Email: media@otscon.com
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