EmailEmail
PrintPrint
Alcoa cutting 2,350 jobs in Mexico
Saturday, May 22, 2004

Alcoa said it would terminate another 2,350 workers at its majority-owned AFL Automotive's Mexican operations, citing "competitive conditions of the global market."

A lost contract was the main reason for the 9 percent work force reduction, Alcoa spokesman Kevin Lowery said.

The restructuring comes a year after 4,250 jobs were eliminated at the venture's Mexican plants, which make electronic and electrical distribution systems used by the North American automotive industry. It will reduce employment at the Mexican plants to approximately 24,000, Lowery said.

AFL Automotive is part of Alcoa Fujikura Ltd., a joint venture 51 percent owned by Alcoa. Japan's Fujikura Ltd. owns the remaining stake.

Vice President Jose Alvarado said reduced production at plants in the state of Coahuila on the U.S.-Mexican border made it necessary to eliminate the jobs. Employees will be released next month and will receive severance and outplacement assistance, Alvarado said.

AFL Automotive operates 35 plants in North America, Latin America and Europe.

Alcoa shares ended yesterday at $29.48, up 18 cents.

First published on May 22, 2004 at 12:00 am
Len Boselovic can be reached at lboselovic@post-gazette.com or 412-263-1941.