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Ainak Inc. announces massive layoffs

March 06, 2009|Sun Staff report

Ainak Inc., a local industry that manufactures automotive parts, announced massive layoffs Thursday as the company prepares to move processes to facilities overseas.

The company said it will eliminate around 104 jobs by Oct. 31. It plans to scale back 90 full-time employees starting at the end of May, while cuts in the company's temporary workforce of 14 could begin immediately. Ainak plans to retain 33 employees at the Winchester plant for sales, distribution and support functions.

"Ainak has not had a substantial reorganization that has resulted in a major downsizing previously; however, after many very difficult deliberations, the parent organization has determined that to remain competitive, the present business model must be changed," the company said in a statement.

Workers were notified of the plans Thursday and severance packages have been offered to full-time employees. The package includes at least four weeks of base pay plus an additional week for each year the employee has worked at the plant and money for additional health insurance, the company said.

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Ainak opened in Winchester in 1997 as a subsidiary of the Gomunoinaki Company, an international firm based in Japan that manufactures rubber, plastic and foam components.

The company said its molding process will be moved from the Winchester plant to existing facilities in Indonesia and China. An assembly process will be relocated from Winchester to undetermined location.

The layoffs mark another major blow to the local job market this year.

Last week, manufacturing firm Leggett & Platt eliminated 22 jobs from its plant on Ecton Road. The company is consolidating its Winchester assembly line with a branch in Georgetown.

Also, Niles America Wintech announced plans Feb. 28 to eliminate a "substantial" number of jobs over summer, although the company has not released firm numbers.

According to the latest figures available from the Kentucky Office of Unemployment and Training, unemployment swelled to 7.5 percent in December. That was an increase from 4.8 percent in December 2007. More than 1,300 residents were unemployed, according to the office.

Contact Mike Wynn at mwynn@winchestersun.com

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