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Power generator business Cummins is to close its manufacturing operations in Kent amid weak global demand for its products.
Its generator assembly operations at its plant in Manston will be moved to Daventry, India and China over the next two years.
Its base in Thanet, which employs about 600 people, will become a regional distribution and logistics center.
It is unclear how many job losses will result from the move but about 150 people work on its production lines, building and testing generators.
The announcement comes less than a year after the firm announced it was expanding manufacturing operations at the site after receiving £13 million in new business.
In June it said it aimed to increase annual turnover to more than £400 million and that a number of new jobs would be created.
Today, chief operating officer Rich Freeland said: “By relocating our UK generator assembly operations to other locations, we can better balance our capacity with demand, and leverage our global supply chain strengths.
“We believe that making these changes will improve our manufacturing capabilities and processes, enhance our customer service, and generate efficiencies by further integrating our power generation and engine supply chains.
“Cummins remains committed to our strong presence in the UK.
“We are working to implement changes across the globe that create a stronger and more competitive Cummins and underscore our mission and values.”
Cummins Power Generation is a subsidiary of Cummins Inc, which is listed on the New York Stock Exchange and employs 55,000 people worldwide.
The company has had operations in the UK for nearly 50 years and employs 4,500 people across 23 sites.