News Summary
Grede LLC has announced the closure of its foundry in Brewton, Alabama, leading to the layoff of 220 employees by 2025. The decision was driven by decreased demand in the automotive market since COVID-19. The closure is a significant blow to the local economy and is expected to have a ripple effect on the community. Despite the challenges, local leaders remain hopeful that many displaced workers will find new employment opportunities.
Brewton, Alabama Faces Major Job Loss as Grede LLC Announces Foundry Closure
In a significant blow to the community of Brewton, Alabama, Grede LLC, a Michigan-based manufacturing company, has made the difficult decision to shut down its foundry operations, resulting in the layoff of 220 employees by 2025. This decision was communicated to employees in late February 2025, and the company has since filed a WARN notice with the state on April 1, 2025.
All About the Foundry
The Brewton facility, which has been operational since 1976, primarily focuses on producing iron castings for the U.S. automotive market. Over the years, this site has played a crucial role in supporting local and national automotive production. However, Grede has pointed out that the markets they serve have not returned to pre-COVID volumes. This has resulted in excess capacity at several of their U.S. foundries, prompting this unfortunate decision to cease operations.
Impact on Employees
Of the total workforce affected, approximately 130 hourly workers, 30 salaried employees, and 60 third-party contractors will find themselves looking for new job opportunities. All of these workers are represented by the United Steelworkers union, which is working to support them during this tough time. Grede plans to offer affected employees a separation package. Alternatively, some employees may choose to transfer to other Grede locations across different states.
Timeline for Closure
Grede has set the final operational day for the Brewton facility as May 22, 2025, with all manufacturing work expected to cease completely by the end of that year. There is some hope that the facility may be repurposed for other uses, such as warehousing or research and development, keeping a part of its legacy alive post-manufacturing.
Historical Context
This closure marks the fourth and final Grede location to be shut down in Alabama, following previous closures in Columbiana in 2020, Bessemer in 2016, and Marion in 2013. Grede still operates eight other foundry locations and three machining sites across states like North Carolina, Wisconsin, Pennsylvania, Indiana, Michigan, and Minnesota, but this reduction highlights serious challenges facing the manufacturing sector.
Local Reaction
The news has been met with disappointment and concern from local officials, as they anticipate the ripple effect this job loss will have on Brewton’s economy. Many of the layoff-bound employees live outside of Brewton, making the impact on families even broader. Local business owners have also expressed sadness, highlighting the emotional toll that this closure will take on the community.
Looking to the Future
Despite the grim news, there remains some optimism for Brewton’s workforce. Local leaders believe that many of the skilled workers from the Grede facility will find new employment opportunities relatively quickly. The existing skills of these workers, who have spent years in manufacturing, could facilitate a smoother transition into new roles.
In summary, the closure of Grede LLC’s foundry in Brewton is undoubtedly a significant loss for the community, but there is a sense of hope that the talented workforce will be able to overcome this challenge. As Brewton plans to navigate this transition, the community’s resilience will surely come into play, paving the way for new beginnings and opportunities.
Deeper Dive: News & Info About This Topic
- AL.com
- Wikipedia: Manufacturing in the United States
- Brewton Standard
- Google Search: Grede LLC
- Recycling Today
- Google Scholar: Manufacturing Layoffs
- PR Newswire
- Encyclopedia Britannica: Economy
- News Break
- Google News: Brewton Alabama Job Losses
