(Sumter) April 15, 2004 - The Robert Bosch Corporation is closing two separate Sumter plants and moving both operations to Mexico, the company announced to employees on Thursday.

A total of 820 employees will lose their jobs.

And some in the Sumter community think the job cuts at Bosch will have a ripple effect on the entire community.

Diane Rausch manages Tony's Place, a pizza parlor, just down the street from the plant. She says lots of her business comes from the Bosch plant, "I believe it's going to make a difference here at our place, but all over Sumter it's going to make a difference."

And at Credit Cars, they say there will be a trickle-down effect because less money in workers hands means less money in Michael Frierson's used car business, "That means it's going to be a bit slow. If people lose their jobs, they're not going to buy cars. That makes it hard to pay bills."

The company began closing the drum brake facility and announcing lay-offs to its 400 workers in January. The 420-worker vacuum booster facility began shutting down on Thursday. All operations in the Palmetto State will be shut down by the summer of 2006.

In a statement Thursday spokesperson Beck McDonald wrote:

The move is being made because the division continues to face increasing pricing pressures across its brake systems product line. The facility in Sumter is losing money and we see the trend continuing and increasing. Costs will be reduced in Mexico which will be more beneficial to the company.

In January, Bosch Spokesperson Becky MacDonald told WIS News 10 in a phone interview, "The automotive industry is facing challenging cost pressures. In Sumter, our drum brakes business has been unprofitable for years."

The Robert Bosch Corporation also has automotive manufacturing facilities in Anderson and Charleston. Officials say those operations will not be affected. The company employs more than 21,000 people.

The drum brake plant has been a fixture in Sumter for 22 years. Bosch is one of the largest employers in Sumter. According to the US Department of Labor, Sumter's unemployment rate is 7.3 percent, which is higher than the state average of 6.9 percent.

State Senator Phil Leventis represents Sumter County, "It's a critical story in the lives of Sumter County. For people in Sumter, it's a life changing event."
    
He says keeping companies like Bosch in our state and country requires providing the best bottom line, "I think the national legislation everyone's working on to make a level playing field, so that a company doesn't leave because there are better benefits elsewhere."

Governor Mark Sanford's office released a statement Thursday saying the administration is pushing for reforms that will keep jobs in our state.

Peggy Holland works at Sportsman's Stop and Shop a half mile away from Bosch. Many of her customers are Bosch employees. She's concerned about losing money once Bosch closes its doors, "I'm sure it's going to affect us. One way or the other, business will be slow."

Bosch is just one of 51 companies announcing layoffs in South Carolina since January. According to the Employment Security Commission, layoffs and closings have eliminated 4279 jobs in South Carolina so far this year. That includes 160 jobs at the Bose plant in Blythewood. The company is moving part of its manufacturing operation to Mexico.

The Palmetto State is also gaining jobs. The State Commerce Department web site shows Siemens is opening a facility in Columbia with 120 jobs. Dollar General will open a distribution center in Union County in 2005, employing 600 people. Walgreens will open a distribution center in Anderson County in 2007, creating 450 jobs. Thursday General Electric announced plans to add 300 jobs to its Greenville plant. And, 150 new jobs are opening in Greenwood where Tyco Healthcare Group is moving jobs to the area.

Reported by Nicole Bell & Jennifer Miskewicz
Updated 10:26pm by Chris Rees