Engine plant lays off 390 in Nash County

The layoffs take effect next Monday.

More than 1,100 people will continue to work at the plant, produces mid-range diesel and natural gas engines.

Cummins last month offered voluntary buyouts to all hourly workers at the plant, officials said. Because only 37 people accepted the offers, further cuts were needed because of sagging demand, they said.

“Our employees ... have done a terrific job managing through difficult circumstances over the last few months, but the demand for our engines continues to fall due the deep global recession we are facing today,” Dave Crompton, vice president of Cummins MidRange Engine Business, said in a statement. “(The plant) makes a broad range of products that are well-positioned in the market, and we are optimistic that these actions, along with other cost reductions made at the plant, will allow (it) to take full advantage of any future economic recovery.”

Laid-off workers will receive a severance package that includes salary, continued benefits for a specified period and outplacement assistance, officials said.

Cummins began producing engines at the 1.2 million-square-foot plant in 1983. The company bought out Case New Holland, its partner in the joint venture, last July.