Furloughs continue at LG Chem battery plant

11:59 AM, Oct 24, 2012   |    comments
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HOLLAND, Mich. (WZZM) - A highly-touted battery plant in Holland that has yet to make one battery is "extending and expanding" furloughs for its 200 employees.

LG Chem Michigan Inc. started the rolling furloughs on April 30.  The company says the unpaid furloughs are the "result of a retiming of the start of battery cell production as the electric vehicle market develops."  The company says that they will begin production when demand increases and market conditions shift.

WZZM reported the furloughs and lack of production at the plant in September - Click here for that report.

The company says that the tax breaks given to the company for the construction and operation of the plant have not gone to waste, as hundreds of construction jobs were involved in the building of the plant and that the plant will be fully operational when the market for batteries improves.

The Grand Rapids Business Journal reports that the plant was intended to make batteries for the all-electric Chevrolet Volt, but that car has not had the level of sales GM anticipated, and production has been reduced.

 

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