Hino Motors Manufacturing has announced the planned closure of its stamping and component plant in Marion, Arkansas.

The facility employs about 1,300 workers. The closure is expected to take place mid or late 2027, the company said.

Hino Motors Manufacturing U.S.A. Inc. (HMM) is the second-largest manufacturer in the Memphis area, according to MBJ’s list of the largest Memphis-area manufacturers. HMM is a subsidiary of Japanese publicly traded company Hino Motors Ltd., of which Toyota owns a majority stake.

Located at 100 Hino Blvd., just west of the I-40 and I-55 interchange, HMM’s 510,000-square-foot plant produces auto parts — specifically knuckles, suspension components, and axles for Toyota Tundra and Sequoia vehicles; frame side rails for Hino medium-duty trucks; and engine connection rods for Hino diesel engines.

Internationally, Hino Motors’ auto parts business saw a operating loss of $190 million dollars in its fiscal year ending March 31, 2024, according to its announcement of the closure. Companywide, the operating loss was $52 million.

“Regarding the parts business, we have concluded that recovering sustainable profitability is difficult, and thus have decided to withdraw from this business,” the company said in its announcement about the plant closure.

The decision was made at a May 31 board meeting, HMM said.

HMM began production at its Marion facility in 2006 and expanded multiple times over the years.

Memphis Business Journal