YORKVILLE — Cordstrap USA is moving all production out of GrandView Business Park, resulting in 36 layoffs by June 1. The location is staying open, however, and instead will become a “major” distribution center that will also retain certain other functions.
Cordstrap makes strapping for cargo-securing systems, most of it a composite of polyester yarn and plastic that the company says is as strong or stronger than steel. It is used to secure loads such as construction materials, massive rolls of paper on rail cars, machine parts and ship cargo.
In 2004, the company opened its U.S. headquarters and first manufacturing plant outside of the Netherlands at 2000 S. Sylvania Ave. in GrandView. It chose the site along Interstate 94 because it wanted to be in the middle of the country, at an easy shipping site, and found affordable space here.
But soon manufacturing in Yorkville, Cordstrap’s only North American production site, will return to the Netherlands. That will result in the layoffs of 31 production people by May 1, according to a schedule the company provided to the Wisconsin Department of Workforce Development. The final five layoffs, including plant manager, are scheduled for June 1.
Cordstrap, which occupies about 80,000 square feet locally, provided the following written statement:
“Over the last few months, we have taken steps to strengthen our presence in North America and to ensure seamless supply and product availability for our North American customers. It is with that in mind that we are formalizing the transfer of manufacturing from our (Yorkville) facility to our state-of-the-art production base in The Netherlands.”
Those products will be transported oveseas by cargo ship, said Jenni Bracken, downstream marketing director for Cordstrap.
The company also stated: “We are strengthening our presence in North America through a new regional headquarters in Rosemont, Ill., and are enlarging our distribution center in (Yorkville). (It) will also continue to be the home base for our customer success and tool repair teams. We are also investing and growing our customer-facing staff in North America and expect it to add jobs in the future.”
Bracken was not able to provide the numbers of remaining jobs after the layoffs, nor expected future jobs here.
The company also stated: “By centralizing our manufacturing at our home base with over 50 years of manufacturing experience, our North American operations can focus on growing, delivering innovation, and serving our customers who can count on us to ensure their cargo reaches its destination free of damage.”