Engine Manufacturer Tecumseh Products to Shut Down Tennessee Plant

The Tecumseh engine plant in Dunlap, Tenn., will start closing down December and will be closed completely in April, according to a statement yesterday.

“As a result of declining customer volume, we regretfully must shut down certain manufacturing operations related to our engine business, including the production facility in Dunlap, Tenn.,” said Kevin Brady, director of operations.

“Affected employees have been notified pursuant to state, federal and local law, and we will do our best to provide them with information regarding dislocated worker assistance through the Tennessee Department of Labor and Workforce Development.”

The plant has about 180 workers, according to local sources.

Tecumseh was called one of the top catches in the region when it came to Sequatchie County almost 20 years ago, at times employing as many as 600 workers. In early 2006, the plant in Dunlap added 200 jobs and started a second shift when Tecumseh’s Corinth, Miss., plant was closed. The second line was later discontinued.

Just under a year ago, Tecumseh Products’ engine and power train business, including the plant in Dunlap, was sold to affiliates of Platinum Equity LLC for $51 million. Sale proceeds were used to reduce debt and focus the company on its core business of making compressors for refrigerators, officials said at the time.

The Dunlap plant makes small engines for companies such as MTD, Toro and Lawn-Boy, and other lines that made engines for snow blowers and electric generators, officials said.