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Nippon Sharyo announces third layoff this year

Officials at Nippon Sharyo in Rochelle have announced a 3rd layoff this year at their plant.

The train car manufacturer will have 50 employees laid off effective February 5th of next year.

Nippon Sharyo had their other 2 layoffs take place in September which involved around 160 workers.

The company says that this will be a temporary reduction to the workforce in the final assembly shop and a 4 week shutdown of its welding facilities. Officials do not know how long the reduction to the final assembly shop will last, but they have implemented a policy dealing with employees being recalled back to work.

The reason behind this current layoff is a result of complications during testing of a prototype rail car which is required a design reviewed by engineers.

Nippon Sharyo plans to provide a severance package for individuals who are laid off.

The company began operations in 2012 in Rochelle and had around 700 employees prior to the layoffs. They opened their 3rd plant in June of last year.

Nippon Sharyo builds rail cars. Contracts include Metra in Chicago along with the California Department of Transportation.

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