Kentucky Manufacturing Plant to Lay Off 1,600 Workers
Ford has announced a significant transition at its battery manufacturing plant in Glendale, Kentucky, where approximately 1,600 workers will be laid off. This announcement is part of Ford’s strategy to shift its operations toward producing advanced battery energy storage systems
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Kentucky Manufacturing Plant Layoffs and Transition
The Glendale facility, now under Ford’s subsidiary BlueOVAL SK, will focus on supplying energy storage solutions for data centers, utilities, and large industrial clients. This transformation is expected to commence within 18 months.
Partnership Changes and Full Ownership
This strategic shift comes as Ford and South Korean battery maker SK On dissolve their partnership. Ford will assume complete ownership of the BlueOval SK facility in Hardin County, a response to declining electric vehicle demand globally.
- The dissolution of the partnership is anticipated to be finalized by the end of the first quarter.
- SK On will pivot operations at its Tennessee facility, reassessing its production focus.
Job Opportunities Amid Transitions
Despite the layoffs, affected workers will have the chance to apply for new positions within the restructured subsidiary managing the Glendale site. The startup of the new battery energy storage initiative is projected to bring in around 2,100 jobs, representing a decrease of 400 jobs from earlier expectations.
Previously, the collective workforce across Kentucky’s BlueOval SK sites was projected at 5,000 jobs.
Project Background and Development Timeline
The establishment of two electric battery plants in Glendale was officially announced in September 2021 by Governor Andy Beshear, SK On, and Ford. Construction commenced in late 2022, with a groundbreaking for a $25 million training center taking place at Elizabethtown Community and Technical College in May 2023. The facility is expected to produce its first battery by August 2025.
Response from Kentucky Lawmakers
In response to Ford’s announcement, Kentucky State Representatives Samara Heavrin and Steve Bratcher voiced their commitment to supporting affected workers in finding new employment. They expressed optimism regarding Ford’s decision to transition toward energy storage but emphasized the need for accountability.
Governor Andy Beshear, addressing the partnership split, expressed cautious optimism for the future as Ford takes control of its Kentucky plants. He attributed the partnership dissolution to federal legislation and policies but refrained from further details.
Future Investments in Electric Truck Production
In related news, Ford’s Louisville Assembly Plant is scheduled to begin production of a new midsize electric pickup truck by 2027. This initiative is part of Ford’s broader strategy to enhance its lineup of electric and hybrid vehicles, supported by an investment of approximately $2 billion over the next two years for its new battery energy storage operations.
