Alcoa Fujikura Ltd. will eliminate more than 4,200 jobs at its Mexican automotive operations this summer due to efficiency gains at the wire harness company.
The work-force reductions at the U.S.-Japanese joint-venture supplier will affect three of its six Mexican plants. The company will eliminate 1,700 of the 11,000 jobs at its Ciudad Acuna plant, and 2,550 of the 8,400 jobs at the Torreon, Coahuila, plant.
A third Mexican plant in Piedras Negras also will lose some of its 4,600 positions, but that number has not been determined.
Company spokesman Kevin Lowery says the job cuts are not the result of a business decline, and the work is not being shifted to other plants. Rather, he says, the cuts are the result of efforts to improve manufacturing efficiency at the company.
"We are getting more efficient in the way we operate," he says.
Alcoa Fujikura, which is 51 percent owned by Alcoa Inc. and 49 percent by Japanese supplier Fujikura Ltd., operates 30 factories around the world. There are 30,000 employees in Mexico alone involved in the labor-intensive work of producing wire harnesses.
Last year, the venture posted worldwide sales of $3.1 billion. It ranked No. 44 on the Automotive News list of top 150 original equipment suppliers to North America with estimated original equipment sales of $990 million in 2002.
The company has opened plants in other low-cost production markets, including China, Hungary and Venezuela. Last month, the company said it had been awarded the contract to supply Ford Motor Co.'s F-250 truck program.