ROCHELLE — Nippon Sharyo released the following statement Tuesday regarding its reduction in workforce announcement at its Rochelle factory which will affect nearly 100 employees at the plant.
The following is the statement released on behalf of Nippon Sharyo:
“It is with deep regret today that we announced to employees a reduction in our workforce at our Rochelle factory. This difficult decision is the result of ongoing technical complications with the design of one of our prototype cars that have caused significant delays in the production schedule, as well as other challenging business considerations.

“About 100 of the 350 employees will be affected by this reduction in workforce. The factory and its workshops will continue to operate as planned to meet the production deadlines of existing projects.
“We are grateful for the hard work and dedication of our employees, and will be providing severance packages to those affected by this announcement.”
In September 2015, Nippon announced 100 temporary layoffs at its Rochelle fabrication and welding shops citing the reduction in force was a result of complications during the testing phase of one of its prototype cars, which requires the company to undergo a design review by its engineers, according to a statement from the company at that time.
A second round of layoffs affecting nearly 60 employees was announced later that month.
The company began operating at the Rochelle facility in 2012 and expanded the location in June 2014.