Columbus-based Cummins Inc. (NYSE: CMI) has announced plans to reorganize its manufacturing operations in the United Kingdom. The company says the decision is part of its plan to adjust to lower demand for power generation equipment.
Cummins says over the next 24 months, its generator set assembly operations in Kent, UK will be relocated to Daventry, UK, as well as India and China. The plant in Kent will be reorganized into a regional distribution and logistics center.
The company did not release details on how the move will affect employees currently working in the Kent plant. Cummins currently has eight manufacturing facilities and 4,500 employees in 17 cities in the UK.
"By relocating our U.K. generator assembly operations to other locations, we can better balance our capacity with demand, and leverage our global supply chain strengths," said Cummins Chief Operating Officer Rich Freeland. "We believe that making these changes will improve our manufacturing capabilities and processes, enhance our customer service, and generate efficiencies by further integrating our power generation and engine supply chains."
The announcement is the latest in a string of adjustments announced by Cummins. Earlier this month, the company announced plans to scale back light-duty engine production in North America as a result of what Freeland called weakening market conditions.
In October, Cummins announced it was cutting up to 2,000 workers by the end of the year.