Plasan North America laid off 64 of its 140 employees on July 2nd, according to a Worker Adjustment and Retraining Notification submitted to the state. The metal fabrication facility on Wilson Avenue in Walker cited “reduced business/work” and “cancellation of a government contract” as the reason for the layoffs.
It remains unclear what contract was cancelled.
The company was awarded a $300 million, five-year contract in 2023 to provide the U.S. Army with parts for armored military vehicles as part of an $8.66 billion contract between the U.S. Army and South Bend, Indiana-based AM General LLC.
In an email, Plasan referred WGVU to AM General and the Department of Defense. President and CEO Joaquin Salas stated, “Because of our role as subcontractor on this program, Plasan is not in a position to comment on it. Plasan will continue to operate in Walker in support of our other contracts.”
According to the WARN Act filed with the state, affected workers would receive severance.