WATERTOWN, New York (WWNY) – New York Air Brake is pulling its manufacturing operations out of Watertown, affecting roughly a quarter of its local workforce.
The company announced Wednesday that Watertown will instead become a machining operation.
The Air Brake employs nearly 400 workers at its location on Starbuck Avenue and the change will impact approximately 125 Watertown-based jobs.
The company, which makes train control systems for the railroad industry, said it will move production to Acuña, Mexico, as well as three U.S.-based NYAB facilities: Salisbury, North Carolina; Nixa, Missouri, and Kansas City, Missouri.
New York Air Brake executives shared news of the plan at meetings with employees Wednesday.
In order to minimize disruption to customers, the company said the phased transition across North America will begin in the fourth quarter of 2021 and is expected to end by the close of 2022.
“New York Air Brake is a global company operating in an ever-changing global marketplace. Throughout our history, this business has successfully evolved its manufacturing approach to better serve our customers,” said Ulisses Camilo, New York Air Brake President and CEO, in a news release. “Our strategic direction for manufacturing has long been to capitalize on our locations and core competencies, always aiming to align production closer to the point of final assembly.”
He noted that more than 70% of NYAB’s freight OE clients are producing railcars in Mexico – a number that continues to climb.
Camilo added, “The accelerated pace of globalization is a factor that places greater delivery pressure throughout the business. Our footprint in Mexico is a crucial connecting point in our North America growth plan. While Watertown manufacturing operations will see the greatest impact, the site is and has been the heart of our business for over 130 years. That will not change. We will remain a committed and active corporate citizen in the Watertown community and Jefferson County at large.”
He said the company will “help support our affected employees as they take their next career step. This includes a severance and benefits package and job placement services. Over the coming weeks and months, we will actively work with outplacement and governmental agencies to begin that process,”
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