Mitsubishi Electric to lay off employees, sell factory in Memphis
Memphis, US: Mitsubishi Electric plans to sell its factory in Memphis and layoff 160 workers.
The state-of-the-art, transformer manufacturing plant just opened six years ago, after the company received tens of million of dollars in tax incentives to do business in the Bluff City. Mitsubishi Electric was awarded a $34 M PILOT, Payment in Lieu of Taxes, in 2011. The state of Tennessee came up with an additional $11 M infrastructure grant.
The factory, located at 2865 Riverport Road, makes the world’s largest transformers for North American power companies. But business has been sluggish and the Japanese company is reportedly looking at selling its plant to a rival. MBJ reports the general manager of the plant says the 160 workers getting laid off will likely get re-hired by the new owner.
Company officials expect negotiations on the sale to be finalized in the near future.