Staff report

SALISBURY —New York Air Brake, a global manufacturer of control systems for the railroad industry, today announced plans to expand its Premtec plant near Salisbury as it moves part of its operation from Watertown, N.Y., to Rowan County.

The move will add 28 jobs at Premtec, located in Whitney Industrial Park near the intersection of Grace Church, Camp and Roseman roads. The average annual salary would be $33,528, with benefits, according to RowanWORKS.

According to a NYAB press release, the company will move its peripheral product assembly to the Premtec plant beginning in the fourth quarter of this year, wrapping up in early 2018.

Rowan County commissioners approved a tax incentive deal in June aimed at convincing NYAB to keep Premtec in Rowan and expand the facility, rather than move the operation elsewhere. The deal rebates 75 percent of the tax on the company’s new $1.16 million investment for five years.

New York Air Brake employs over 425 workers in Watertown. The shift of products impacts about 40 of those jobs.

“One thing must be made very clear … the decision to move production is in no way reflective of the commitment, nor the performance of, our dedicated shop floor employees,” said Michael Hawthorne, New York Air Brake president and CEO, in a press release.

Factors contributing to the move, he said, included the globalization of the company’s business —  creating pressure to reduce costs — and the decision to align its factories with product lines to maximize productivity, flexibility and efficiency.

Hawthorne said the Watertown facility is the sole location for the design, testing and manufacture of freight car brakes. Keeping the more complex assemblies aligned with this work enables the company to create a high-tech manufacturing hub.

Shifting peripheral product production to Premtec in Salisbur consolidates the less complex assemblies into another manufacturing hub, while at the same time improving NYAB’s proximity to its customers, he said.

“We are committed to making every effort to ensure that the needs of the affected employees will be met. To that end, we will be meeting with the IAM Union leadership to discuss the effects of the company’s decision, including providing severance pay and other benefits to union employees. We have also enlisted the aid of outplacement and governmental agencies that will assist those employees impacted in securing alternate employment opportunities,” said Hawthorne.