WEST POINT, Miss. (AP) - Navistar Defense is suspending production at its plant in West Point, Miss.
Navistar spokeswoman Lauren McFarland said in a statement that the 80 workers at the plant were notified Thursday.
Navistar Defense is part of Warrenville, Ill.-based Navistar International Corp.
McFarland says the decision came in response to across-the-board federal budget reductions known as the sequester that went into effect on March 1.
“The sequester along with the pending drawdown of operations in Afghanistan, have led to a depleted order board, which requires us to make the difficult decision to suspend production at the West Point facility,” McFarland said. “We are navigating through a challenging environment in the defense industry, and this was a very difficult decision because Navistar values the workers. These are truly great people who have produced vehicles that make a difference, but the reality is the defense environment has changed significantly and as a business, Navistar has to change and adapt with it.”
The last day for production and for most workers at the facility is July 5.