Cummins to lay off 400

| December 03, 2009

Cummins Inc. will cut temporarily about 400 jobs in January at its Jamestown Engine plant in western New York that produces heavy duty diesel engines, according to a company spokesman.

The plant has been manufacturing about 500 ISM and ISX engines daily, which is close to capacity. Cummins expects that total to drop to 100 units daily in 2010’s first quarter as heavy-duty engine orders decline in response to the U.S. Environmental Protection Agency emission regulations that take effect Jan. 1. Production is expected to recover only gradually after that.

Manufacturing has been strong this year as customers have ordered trucks in advance of the new emissions standards.

The company anticipates the employment cutbacks will be achieved through voluntary temporary layoffs in which employees will retain health care benefits, the spokesman said.

About 1,300 workers are employed at the plant, including 1,100 in production, the company said.

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