95.3 / 88.5 FM Grand Rapids and 95.3 FM Muskegon
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Cancelled government contract leads to layoffs at Walker plant

Plasan North America Inc.
/
Google Earth

A military and commercial automotive manufacturing facility in Walker laid off nearly half its workforce due to the cancellation of a government contract

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.

Dave joined WGVU Public Media in November of 2023 after eighteen years as a Michigan Association of Broadcasters Emmy-nominated photojournalist and editor at Grand Rapids' WOOD TV8 and three years at WEYI TV25 in Flint, Michigan. As a General Assignment Reporter, Dave covers daily news and community events all over West Michigan.
Related Content