Free Trial

Construction plant to lay off over 100 S. Carolina workers

SPARTANBURG, S.C. (AP) — Just over 100 employees at a construction company in South Carolina are facing layoffs.

Kobelco Construction Machinery in Moore, plans to lay off 75% of its workforce — 102 of the plant's 131 employees — in Spartanburg County on May 1 when the company suspends production of all seven of its hydraulic excavator models, multiple news agencies reported.

The Tokyo based company learned in January that its main engine supplier, Hino Motors, was unable to obtain EPA certifications for its new model-year engines, “with no clear outlook on future supply schedule.”

The SK170LC-10 hydraulic excavator manufactured at the Spartanburg County plant is among seven models being suspended for production because of an engine supply issue, the company announced. The engines are needed for the hydraulic excavators produced at the Moore facility.

“Kobelco Japan made a decision to run out of current engines we have on site and will suspend production until the engine issue has been resolved,” Kobelco General Manager Ralph Wabnitz said.

The parent company is looking for a new supplier to build an engine that meets EPA requirements. The current supplier now makes an updated diesel engine, and it has changed the configuration of its production line to manufacture that new engine, company officials said.

“The plant will stay open until a decision about the future of this facility is made,” Wabnitz said. “The suspension of production was not a local decision, rather a decision made by our headquarters in Japan.”

Many employees will either get severance packages or help finding new employment.

Spartanburg County Councilman David Britt said when he learned in February of the pending layoffs, he reached out to state and federal officials to help Kobelco’s supplier obtain its engine certification.

“But due to COVID restrictions, it has made their efforts difficult,” said Britt, who chairs the county’s economic development committee.

“It is terribly unfortunate to Kobelco and their associates for this to happen at a time when their sales are sky high and their workforce is growing rapidly,” Britt said.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

7 Stocks to Buy And Hold Forever Cover

Enter your email address and we'll send you MarketBeat's list of seven stocks and why their long-term outlooks are very promising.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

3 Hot Growth Stocks to Watch Right Now!
Don’t Miss These Top 3 Defense Stocks Set To Gain
Triple-Digit Gains: These 4 Nuclear Stocks Have Even More Upside Ahead

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines