Auto parts manufacturer Hino Motors said it plans to close its factory in Marion by 2027, eliminating 1,300 jobs.
The company detailed the move in a memo to its board of directors on May 31.
The factory produces axles and other suspension components for some Toyota vehicles.
“We hereby announce … we decided to withdraw from the parts business at HMM Arkansas plant,” the memo said.
Hino also said it plans to withdraw from the auto parts business.
“We appreciate the strong contributions of our Arkansas team as well as the support extended to us by the city of Marion and the state of Arkansas over the years,” said Hino Motors Manufacturing President Davey Jung in a news release cited by other news outlets. “This difficult choice will allow our company to redirect our focus towards our truck operations in the United States.”
A memo to investors on Hino’s website said the Marion plant posted a $189 million operating loss in the fiscal year that ended on March 31.
News of the plant closure was first reported Tuesday by localmemphis.com.
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