BAE Systems To Close Sealy Plant In June 2014

Defense manufacturer BAE Systems has announced plans to close its facility in Sealy, 60 miles west of Houston. Layoffs at the plant are expected to begin in November.

More than 300 BAE Systems employees — ranging from welders to financial specialists — will lose their jobs as a result of the decision. The plant will close its doors for good in June 2014.

The factory took a major hit in 2009 after losing a $3 billion contract for military trucks to rival Oshkosh. Orders fell with the end of the Iraq War and the winding up of U.S. combat operations in Afghanistan. Steep cuts to defense spending came as the final blow.

John Machisak is director of operations at the Sealy facility.

“It’s a sad day for the Sealy site, and it’s certainly not a reflection on the workmanship or the quality of the work that’s gone on here in the past. It’s purely a consolidation effort.”

The facility has turned out parts for armored fighting vehicles and military trucks since 1990. It’s been part of BAE Systems since 2007, when the British-based company bought out the previous operator, Armor Holdings.

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Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...