Cary electric component maker to close
Posted April 7, 2009 11:01 a.m. EDT
Cary, N.C. — A manufacturer of electric components plans to go out of business next month, laying off scores of workers in the Triangle.
Energy Conversion Systems filed a notice Monday with the state Department of Commerce that it planned to lay off 165 people from its Cary headquarters and a plant in Dunn. The company will close its doors on May 25.
"The closure of the facility on short notice is caused by business circumstances that were sudden and unexpected," Pat Reagan, vice president of human resources, wrote in the notice. "These business circumstances include the unanticipated and dramatic downturn in the economy and the termination of the revolving credit agreement with Wachovia. As a result, the company does not have sufficient capital to continue to fund its operations."
ECS is owned by New Jersey-based Midmark Capital and bills itself as a major producer of magnetic and commutation products serving the global electric motor and electronic sensing industries. Also Monday, ECS announced it had reached an agreement to sell operations in Germany to a Slovenian company.