A manufacturing facility in Franklin is shutting down, and 39 workers will lose their jobs.
Precision Cutoff of Indiana decided to close its Franklin facility because the company determined it was not a viable business, according to a letter filed with the Indiana Department of Workforce Development.
The facility in the Hurricane Industrial Complex will close by Jan. 31, the letter said.
The company also is pursuing a sale of the operation, the letter said. The company leases space in the building at 1001 Hurricane St.
Precision Cutoff cuts, details and manufactures metal tubes used in products such as auto exhaust systems and lawn and garden tractors. The company is owned by Ohio-based Woodsage Industries.
The Franklin facility opened in 2008 after outgrowing a building in Toledo, Ohio. The company then moved into a portion of the former ArvinMeritor complex, where officials planned to invest $2 million. Company officials said they picked Franklin because of its proximity to Interstate 65.
At the time, the company planned to hire 47 employees, including 40 operators, at an average wage of $15.68 an hour. Company officials said more jobs were possible in the future.
According to the letter, the company will eliminate 23 temporary labor positions by Nov. 21, 11 full-time positions by Dec. 21 and the remaining five full-time positions by Jan. 31.
The county’s top business recruiter most recently spoke with company officials last year, and they were pursuing ideas for new business, said Cheryl Morphew, Johnson County Development Corp. president and chief executive officer.
She was not aware of any struggles the company was having, she said.
“This came as a surprise to us,” Morphew said.
Franklin Mayor Joe McGuinness said he didn’t know details about the company’s plan to close the Franklin facility and had not yet spoken with company officials.
He was concerned about the loss of local jobs. Losing jobs is a setback in the city’s work to recruit new companies and jobs, he said.
“That’s 39 more people that are going to be looking for jobs and 39 families that are going to be stressed,” McGuinness said. “That just makes me want to fight harder and be more aggressive to try to find jobs for Franklin.”