TPI Composites will close bus body plant in Newton

TPI Composites will close its electric bus body manufacturing plant in Newton, officials confirmed Thursday.

In a statement provided to Newton Daily News late this morning, TPI said the plant, effective Feb. 29, will consolidate operations into its Rhode Island transportation facility at this time. Some of the 147 employees at the bus plant may retain new jobs within the company by the time operations cease.

“Nearly all of TPI’s impacted associates at the bus body facility will be offered employment opportunities at the company’s Newton, Iowa-based wind blade facility or other TPI facilities,” the statement said. “We remain the largest employer in Jasper County.”

Josh Syhlman, a plant manager at TPI’s wind blade factory in Newton, said the decision to close the bus plant was difficult, but it had “never reached adequate production and profitability levels.” Staff regularly manufacture two bus bodies per week, he said.

Closing the plant is “mostly due to the inability to attract and maintain the requisite employee base,” Syhlman added. Although the wind blade manufacturing plant employs more than 1,000 people, the facility is still understaffed.

Low unemployment rates also make it difficult for TPI to hire new staff.

TPI’s bus body plant opened July 2018 inside a renovated space at the former Maytag Plant 2, which had been out of production for nearly 11 years. The buses are made of a lightweight composite utilizing a combination of reinforcement materials like fiberglass and carbon fiber to form the frame.

By August 2018, TPI successfully shipped its first composite bus body to Proterra, Inc., a California-based company that designs and manufactures electric transit buses and charging systems.

TPI announced in November 2017 it would enter into a five-year supply agreement with Proterra, Inc. to create up to 3,350 composite bus bodies. Syhlman said that contract will not be affected by the closing of the Newton bus plant.

Instead, TPI’s Rhode Island-based bus plant will take over production and likely meet the agreed upon quota.

Newton Daily News will post updates as the story progresses.

Read TPI’s full statement here:

“TPI has decided to close its Newton, Iowa bus body facility, effective Feb. 29, 2020, and will consolidate the facility’s operations into TPI’s Rhode Island transportation facility at this time. Nearly all of TPI’s impacted associates at the bus body facility will be offered employment opportunities at the Company’s Newton, Iowa-based wind blade facility or other TPI facilities. We remain the largest employer in Jasper County.”

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com