Centrifugal compressor manufacturer Atlas Copco Comtec is trimming its local labor force by 11.5 percent and sending its work to Belgium and China.
Atlas announced Monday it will cut 42 of its 364 jobs in Voorheesville. The labor shift, which will occur over the next 13 months, follows the December announcement that Atlas would invest $8 million in expanding its Voorheesville plant and creating 50 jobs. That project made the company eligible for up to $700,000 in state incentives.
Atlas, a subsidiary of the Swedish Atlas Copco Group, said the cuts stem from the decision to transfer some manufacturing operations and functions unrelated to the gas and process industry to sister companies in Belgium and China. The labor shift, which will be completed by the end of 2009, will make the Voorheesville facility a strict manufacturer and seller of customized compressors for the gas and process industry.
“We believe the transfer of certain manufacturing activities and functions will strengthen our ability to support the needs of our customers throughout the world,” Atlas Copco Comtec General Manager Peter Wagner said in a statement.
In December, Empire State Development Corp. said Atlas’ planned expansion would make it eligible for a $500,000 manufacturing assistance program capital grant and a $200,000 capital grant that would partially reimburse it for infrastructure and site work. To receive those benefits, Atlas much reach project targets by January 2011.