Kirksville Ortech jobs outsourced to Mexico, Asia
KIRKSVILLE, Mo. —
Cheaper wages outside of the United States is one of the main reasons a northeast Missouri plant will soon be closing its doors.
A press release from Ortech Human Resource Manager Jon Hurd states the decision was made by Ortech's parent company, U-Shin Japan.
It goes on to say the closing is due to the inability to compete with foreign outsourcing.
In total, 12 employees work at the Kirksville plant.
Hurd tells KTVO many of those jobs will now go to Mexico or Asia.
He adds that laborers in Asian countries and Mexico will work for a fraction of the pay that is required in the United States.
The minimum wage in Mexico is equivalent to about $4.20 per day.
At this time, the official date of closure has not been determined.
Hurd says Ortech's doors will remain open for several more months as the company is working to come to an agreement with current customers.
The facility makes automotive components such as door handles, lock sets, switches and heater parts.
Ortech is located at 2806 Industrial Drive in Kirksville.