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Generator Maker Plans Mexican Plant, Awaits Decision About Lima, Ohio, Plant

Posted on: Tuesday, 4 October 2005, 18:00 CDT

By Tim Rausch, The Lima News, Ohio

Oct. 5--LIMA -- The parent company of Marathon Electric Manufacturing Corp. announced it will be building a new plant in Mexico.

Lima plant Manager Bill Conway said Tuesday the company hasn't decided the fate of the Lima facility at 200 E. Chapman Road.

Marathon Electric produces electric motors and generators and has 150 employees.

Its parent company, Wisconsin-based Regal-Beloit Corp., said the new facility will likely be put in Monterrey, Mexico, but not open for 18 to 24 months from now.

Conway said the company officials have not indicated when a decision on the Lima plant would be coming, though one of the scenarios was to keep Lima open as well as open the new facility.

"There is still some uncertainty and it weighs on people's morale," Conway said.

Regal-Beloit in late August said it was in the midst of investigating the possibility of a Mexi-can production facility. The option of a Mexican generator facility was being explored because of eroding profit margins and global competitive pricing pressures.

"A great deal of research has been completed and we feel that this move will position the company to better compete in the global marketplace," Conway said. "The impact of this deci-sion on current U.S. production operations has yet to be determined."

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Copyright (c) 2005, The Lima News, Ohio

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Source: The Lima News

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