Shutting down a factory of a major US Manufacturer
A leading US engineering conglomerate engaged NORGESTION to restructure their workforce, which was mainly involved in manufacturing, and then shut down the facility.
NORGESTION commenced work a few days before the Client announced its restructuring exercise. This would involve laying off 85% of the factory work force and termination of all manufacturing‐related activities.
NORGESTION began with a 3‐month consulting phase to study alternatives with the factory’s works council.
At the same time, the Client needed to complete existing engineering projects that were already in progress since it was not practical to transfer them to other facilities.
NORGESTION deployed an experienced interim Factory Director who charged with the management of production, maintenance, quality, EHS (Environment, Health and Safety), logistics, planning and industrial engineering, working with a team of 76 workers.
In addition to this, the interim manger was also made part of a European‐level committee to monitor established objectives.
During the negotiation process, NORGESTION’s interim manager actively collaborated with the HR department by providing valuable process inputs and creating a conducive environment for the execution of ongoing projects as the factory was being shut down.
NORGESTION’s interim manager successfully executed the restructuring process without compromising on the agreed quality parameters for executing the ongoing projects. There was also not a single workplace accident during this period.
Upon completion of the restructuring process, the company sold the warehouse and transferred the existing machinery to its group companies.
NORGESTION’s interim manager also successfully dismantled a warehouse, sold the used machinery and executed civil works to prepare the warehouse for the new customer.