Schrader TPMS plant in Tenn. to close

By Shahrzad Pourriahi, Crain News Service

SPRINGFIELD, Tenn. (Jan. 19, 2016) — Sensata Technologies B.V. is closing Schrader Electronics' Springfield plant and plans to relocate production of tire pressure monitoring systems (TPMS) components to factories in Mexico and China.

The move was being made “against the backdrop of a challenging and increasingly competitive environment,” Sensata said.

The announcement comes about 18 months after the unit completed a $15 million expansion at the factory.

“The company will be consolidating all TPMS production for the Americas…to Aguascalientes, Mexico, and Changzhou, China, by the end of 2017,” said Alexia Taxiarchos, global communications director, Sensata Technologie.

The decision was not taken lightly and included extensive deliberation and analysis, a company spokeswoman added.

“Consolidation of production in a larger Sensata facility will provide economies of scale and efficiency that will enable Sensata to continue to meet customers' quality, delivery and price requirements,” Mr. Taxiarchos said.

According to local news reports, the move will affect 300 of the company's 400 employees.

Almelo, Netherlands-based Sensata Technologies is a developer and producer of “mission-critical” sensors and controls. It acquired Schrader International in August 2014 for $1 billion.

This report appeared on the website of European Rubber Journal, a United Kingdom-based sister publication of Tire Business