KNOXVILLE, Tenn. (WATE) — A factory that has operated in McMinn County for more than 20 years announced Tuesday it will lay off more than 500 workers as it idles some of their operations.

Waupaca Foundry in Etowah announced it will soon idle melt, molding and core room production. A WARN notice from the state, which informs state and local officials of layoffs, said that 540 employees will be affected by the layoffs.

Iron casting process operations at the facility will continue. The company said it will start reducing staff starting June 14 or within 14 days of that date.

A Waupaca spokesperson told WTVC that any employee who wants to stay with the company will be offered a $15,000 relocation bonus.

“Our responsibility to our customers and our team members rests on our long-term sustainability,” said Waupaca Foundry President, COO and CEO Mike Nikolai said in a statement to WTVC. “We will continue to supply the high quality cast and machined components and service that Waupaca is known for in the market.”

The supplier has operated in Etowah since 2001.