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The Connectivity Solutions Manufacturing Inc. plant in Millard will close, leaving about 400 manufacturing employees at the sprawling facility without jobs by the end of 2011.
CommScope Inc., a Hickory, N.C.-based company that makes communications network equipment, announced Wednesday that the layoffs will start in April and that the plant will cease operations in late 2011.
The plant, which opened in 1958 and formerly went by the names Western Electric and Avaya, among others, employed 7,700 people at its peak.
When the plant near 120th and L Streets first opened on the metro area's fringe, it served as a spark in Omaha's suburban expansion.
In January, CommScope announced plans to lay off 110 employees and said it would consider closing the plant entirely to cut costs.
The company said Wednesday that about 400 employees are left in the manufacturing operation. Those employees will lose their jobs, although the company said that specifics of how the layoffs will be spaced out has not been determined.
Another 70 corporate employees at the plant will be relocated to an undetermined location within Omaha, CommScope spokesman Rick Aspan said.
“We as a company are certainly disappointed in this outcome — there's no question about it,” Aspan said.
Although the site was long recognized for its manufacturing operation, the area has changed in recent years as empty space at the plant and its front lawn were redeveloped. Walmart Supercenter, Sam's Club, SuperTarget and Home Depot have bustling stores. Other tenants include Millard Lumber and the FBI's Omaha office.
The manufacturing that had been done in Omaha will be shifted to one or more CommScope facilities in North America, the company said. After closing the plant the company said it expects an annualized pretax savings of $18 million to $22 million.
CommScope said it expects to pay $45 million to $53 million in costs to accomplish the closure and manufacturing relocation.
Eddie Edwards, CommScope's president and chief operating officer, said in a statement that a combination of “difficult circumstances” led to the decision to close the plant. He cited underutilization of the facility, high labor costs, a slowdown in customer spending and customer demand for lower-priced products.
“These actions are difficult yet unavoidable, and we regret the hardship on our employees,” Edwards said. “We are grateful to our . . . Omaha work force for their outstanding service.”
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