More than 100 East Texans soon to be without work - KLTV.com-Tyler, Longview, Jacksonville, Texas | ETX News

More than 100 East Texans soon to be without work

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Dr. Jerry Gilley said this can have a domino effect on the local economy Dr. Jerry Gilley said this can have a domino effect on the local economy
LONGVIEW, TX (KLTV) -

Another business has announced their plans to cease operations in East Texas by no later than the fourth quarter of 2014. BorgWarner confirms they are consolidating their manufacturing footprint with the closure of their TorqTransfer Systems (TTS) Longview facility located on Farm to Market Road 349 in Longview.

The confirmation comes just days after Caterpillar announced they will be closing their facility in Kilgore. With the closure of both businesses, 150 East Texans will be without work. 

Dr. Jerry Gilley, the Interim Dean for the College of Business and Technology at the University of Texas at Tyler, said while this is a relatively small percentage of the number of employed residents in Gregg and Rusk Counties, this can have a domino effect on the economy.

"Finding these good paying jobs in those counties will be very difficult to replace. The other thing is that these individuals will not have the income that will allow them to pay their rent, insurance bills, buy food so on and so forth. Sooner or later the State of Texas is going to have to step in and pay unemployment to these individuals, which costs every tax payer in the State of Texas something," Dr. Gilley said. 

BorgWarner said their Longview operation was established in 1996 and is currently a supplier of four-wheel drive transfer case components for the automobile industry. The corporate office said about 50 East Texans will be impacted by this facility closure. They said they are relocating the component business to take place with the final assembly in South Carolina. 

In a press release from the company, BorgWatner stated:

"Our focus will now be on assisting our employees in their individual transitions and ensuring a successful wind down of our operations."

While BorWarner expects full closure by the end of the fourth quarter of 2014, Caterpillar said their facility will close by the end of the year. 

Caterpillar said they will offer eligible full-time employees a severance package and transitional support. 

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