Industry

Harley closes factory, sheds 1000 jobs

US bike giant restructures operations for improved efficiency

US MOTORCYCLE giant Harley-Davidson has announced it is to close one its manufacturing plants in a bid to streamline operations, resulting in the loss of around 1,000 jobs.

The company said it will spend hundreds of millions of dollars to reshape the York plant, its largest motorcycle assembly facility, at the expense of laying off nearly half the current work force.

"A restructured York operation will enable the plant to be competitive and sustainable for the future, and the new labour agreement is critical to making that happen," said Harley's CEO, Keith Wandell.

Many employess feared the company would relocate the plant to a more cost-effective location within the US, in light of steep decline in sales.

The Pennsylvania government offered $15 million in capital grants and job training funds to Harley, as an incentive to keep the factory within the State.

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