Trump attacks Rexnord over plans to move Indiana plant to Mexico
US President-elect Donald Trump has criticised bearing, coupling, and gear drive manufacturer Rexnord over its plans to move production from the US state of Indiana to Mexico.
Trump took on Milwaukee-based Rexnord on Twitter over the weekend, as the company intends to move its industrial bearings production south of the border, according to the Wall Street Journal.
“Rexnord of Indiana is moving to Mexico and rather viciously firing all of its 300 workers. This is happening all over our country. No more!” Trump wrote in a tweet on Saturday.
The closing of the Indianapolis plant is part of Rexnord’s plan to counter slow sales by cutting $30 million (€28m) in costs and a quarter of its factory space globally before the end of March 2017.
Rexnord, with 4,200 employees in the US, has been hit by financial difficulties in its last fiscal year, as its sales dropped by 6.3% to $1.92 billion and profits dwindled by 19% to $67.9 million.
The comments on Rexnord came a day before Trump sent out a series of messages, also on Twitter, outlining his plans to inflict a 35% import tariff on companies moving their production out of the US.
Instead, the President-elect encouraged businesses to relocate within the US and seek tax cuts, which some state officials have noted may result in an “arms race” of incentives.
Earlier last week, Trump negotiated a $7 million (€6.5m) tax break deal with industrial systems maker Carrier to save 800 jobs in Indiana, but the company nonetheless intends to shift another 1,300 jobs from Indiana to Mexico.
This article was written by Ilari Kauppila, editor at Fluid Handling International