Kobelco Construction Machinery will lay off 75% of its workforce on May 1st at its Moore, South Carolina, excavator plant, according to several media reports.
“Kobelco Japan made a decision to run out of current engines we have on site and will suspend production until the engine issue has been resolved,” Ralph Wabnitz, Kobelco general manager said in an AP report.
The layoff will include 102 of the plant's 131 employees, said the report.
[Related: Kobelco to Use Yanmar, Isuzu to Fill Engine Void]
The move follows the company's announcement in February that it would temporarily suspend U.S. excavator production at the plant due to engine supply problems.
Kobelco engine supplier Hino Motors informed KCM in January that its 2021 EPA emission certifications had not been obtained on four engine models, adding there was "no clear outlook" on its future supply schedule.
“The plant will stay open until a decision about the future of this facility is made,” Wabnitz said in the AP report. “The suspension of production was not a local decision, rather a decision made by our headquarters in Japan.”
