Parker Hannifin Corp. will lay off about 350 people at its Racor fuel filter plant in Modesto by year’s end, the Cleveland-based company announced Thursday.
All of the manufacturing will shift to Parker Hannifin plants in Kearney, Neb., and Holly Springs, Miss., because of excess capacity, said Aidan Gormley, director of global communications and branding. The Modesto site will continue to employ about 70 people in sales, marketing, customer service, engineering, supply chain, information technology and human resources.
Racor was founded in 1969 in Modesto and purchased by Parker Hannifin in 1985. It makes filters for boat and other engines on Finch Road in the Beard Industrial District. Racor laid off 40 people in early 2016, leaving about 560 at the time.
The larger round of layoffs will start immediately and wrap up in December, Gormley said. The affected people will get severance pay and help with finding other jobs.
“This plan to close manufacturing in Modesto in no way reflects the performance of our dedicated employees there,” a news release said. “This was not an easy decision to make given the impact it has on our employees, but it was necessary to maintain the competitiveness of our filtration businesses.”
Racor has been among the largest nonfood manufacturing employers in Stanislaus County. The plant has long been part of the Beard district, which has about 30 buildings on 2,000 acres near the southeast corner of Modesto.
The layoff announcement came four months after Parker Hannafin’s acquisition of Clarcor, a filter company based in Overland Park, Kan.
John Holland: 209-578-2385