Skyline Corp. is suspending operations at its plant in Elkhart. The manufactured housing producer is headquartered in the city and opened the manufacturing facility less than a year ago. In a notice to the U.S. Securities and Exchange Commission, Skyline says the majority of jobs at the Elkhart plant will be cut.
The company says the facility has not been profitable since it opened last June. The filing states that despite demand for its products from dealers and communities, "the leased facility used for production prevented daily volumes to reach and maintain profitable efficiencies."
Production is set to cease Wednesday. The company’s SEC filing did not discuss employment levels at the Elkhart plant. Prior to opening the Elkhart plant and the decision last month to suspend operations at a Texas plant that was also unprofitable, Skyline Corp. reported a company-wide employee headcount of some 1,350 in 11 states. A notice to the Texas Workforce Commission said the Midland facility closure could affect 105 workers. Last week, Skyline Corp. announced it had located a buyer for the Texas operation and the $2.25 million sale is expected to be complete next month.
The financial impact of suspending operations at the Elkhart plant, the company says, could not yet be determined.