Missouri Auto Industry Takes a Hit as Manufacturer Announces Closure and Layoffs

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OTSCON, a company specializing in manufacturing parking brakes for vehicles, has officially notified the Missouri Department of Higher Education and Workforce Development of its decision to shut down its factory in Columbia, Missouri. This formal notice, dated Monday, comes after the initial announcement made in April. The closure will result in 160 OTSCON employees losing their jobs around October 31st.

The Columbia plant, operational since 1988, has been a significant contributor to the local economy. However, the prolonged recovery from the COVID-19 pandemic and challenging global economic conditions have led to this difficult decision. OTSCON's letter emphasized these financial strains as the primary reasons for the shutdown.

As the only OTSCON brake factory in the United States, the Columbia facility's closure marks the end of an era for the company in the region. The company’s other manufacturing plant is located in Mexico, with additional operations managed by its parent company in Japan, South Korea, China, Taiwan, Thailand, India, and the Czech Republic.

The company plans to provide severance packages and outplacement support to affected employees, ensuring a structured transition. OTSCON’s President, Hidefumi Sato, expressed deep regret over the impact on employees and the local community, emphasizing the decision was made after careful consideration of various economic and industry factors