A trio of manufacturing and distribution companies are trimming operations in North Orange County, with about 200 workers standing to lose their jobs.
Two of the companies are shuttering their local plants and leaving OC, while a third is reducing its local staff, according to recent filings with the California Employment Development Department.
The companies are:
Portage, Mich.-based Titan Plastics Group Inc., a custom plastic injection molder.
It cut 80 workers in a closure of its Brea plant earlier this year.
Akzo Nobel Coatings Inc., part of the Netherlands’ Akzo Nobel NV, a maker of paints, coatings, chemicals and healthcare products. It is closing its Orange plant and laying off 56 people.
Nestl & #233; Waters North America Inc., a bottled water distributor that’s part of Switzerland’s Nestl & #233; SA. It’s cut about 55 workers from its ranks of 130 in Brea. The distribution facility remains open.
These manufacturing layoffs come on the heels of Emerson Electric Co.’s plan to cut about 140 jobs at an Irvine plant during the next few months.
The plant, part of Emerson’s Liebert Corp. unit, is set to move the work to Ohio. Liebert makes devices that protect electronic systems from heat, electrical surges and power outages.
Liebert said 40 to 50 workers “are expected to remain employed in the local area in a location yet to be determined,” according to a letter written by an Emerson executive to the state employment department in the fall.
Emerson cited the costs of operating in the state as a reason for the move, according to an Ohio agency.
Local manufacturers have complained for years about the high cost of doing business in California, including high rates for workers’ compensation insurance and steep power rates. Only a few have moved to lower-cost states such as Nevada and Arizona.
Titan and Nestl & #233; Waters didn’t cite the costs of doing business in OC for their layoffs.
Titan shuttered its Brea plant after the operation lost its largest customer: Honeywell International Inc.
Honeywell made up more than 70% of Titan’s sales, said Lisa Stevens, the company’s director of human resources.
Titan’s Brea site made molds for one of Honeywell’s brake units, Bendix. Honeywell has switched to a molds provider closer to its operations, Stevens said.
Titan is in the process of selling off plants amid a sales decline, she said. The Brea plant would have been on the auction block, but didn’t make an attractive buy without the Honeywell contract.
The facility made temperature-critical components for several devices, including electrical insulation products, appliance control boxes, lighting and automotive gear.
Privately held Titan, which has estimated annual sales of about $150 million, was formed after Stevensville, Mich.-based Wollin Products Inc. bought Lincolnshire, Ill.-based Plastic Engineered Components Inc. in 2001.
Brea was Titan’s only West Coast operation. Its customers include Whirlpool Corp. and Ford Motor Co.
Nestl & #233; Waters plans to lay off 55 workers this spring, but will keep 75 workers at its Brea plant.
It also plans to keep about 150 workers at another plant in Orange, said Jane Lazgin, a spokeswoman for the company.
The company uses the OC sites to distribute water products to homes and offices.
Lazgin said the worker cuts came after “gains in productivity.” The company plans to shed jobs in account services, which handles billing and collections, among other things.
“It’s more of a matter of this function being consolidated and reorganized than it is cost,” Lazgin said.
The company warned the workers about a year ago of the changes, she said.
Nestl & #233; Waters distributes water under several names, including Arrowhead, Poland Spring, Deer Park, Ice Mountain, Perrier and Calistoga.
Meanwhile, Akzo Nobel is set to close its plant in Orange by the middle of summer, according to a letter filed with the state employment department. Company officials couldn’t be reached for comment.
The Orange facility is Akzo Nobel’s only West Coast operation. The layoffs include shop workers, a chemist and an accountant, according to the filings.
Akzo Nobel makes coatings and paints for cars, homes, boats, aerospace, wood and metals. It also makes industrial chemicals and pharmaceuticals.
