Posted on 08/28/2003 4:21:13 PM PDT by Willie Green
For education and discussion only. Not for commercial use.
Oneida Ltd. is considering closing its Buffalo China plant - a move that would eliminate 450 jobs - as part of a broad cost-cutting plan, the company announced Wednesday.
Oneida said its board of directors has approved the formulation of plans to close the factory and warehouse on Bailey Avenue, but has not made a final decision.
"There's no set timetable," Oneida spokesman David Gymburch said. "It's just in the review stages at this point."
Oneida has begun talks on a shutdown proposal with Local 76A of the Glass, Molders, Pottery, Plastics & Allied Workers International Union, he said. The union represents Buffalo China's 375 hourly workers.
The cost-cutting announcement came as Oneida reported a loss of $3.7 million for its most recent quarter. The financial performance fell below the requirements set by Oneida's lenders, but they granted a waiver that allows Oneida to avoid violating the terms of those agreements, the company said.
The possible closing of Buffalo China would end the tenure of a 100-year-old employer in the city. The maker of restaurant tableware cut 90 jobs in June when it eliminated its third manufacturing shift.
Last year, Buffalo China was awarded $560,000 in state and county grants connected to an expansion project, although much of the funds were left unused.
Gymburch said he couldn't discuss whether economic development aid, or negotiations with the union, would be factors in deciding Buffalo China's future.
Oneida also announced that it is cutting 100 jobs at its plant in Sherrill, and the potential closings of four other plants in Mexico, China and Italy. If the plants close, Oneida would continue marketing products made by independent suppliers under its brand name.
Buffalo China and the non-U.S. plants are struggling because of falling production volume, Oneida Chairman and Chief Executive Peter J. Kallet said in a statement.
Hit by a downturn in sales and carrying $230 million in debt, Oneida is searching for ways to cut costs and become profitable again, the company said. Plant closings and job cuts would save $30 million annually.
Despite the hardship that shutdowns would cause for employees, "we must consider all necessary steps to improve our overall efficiencies and competitiveness during an extremely challenging period," Kallet's statement said.
In May, Oneida suspended its dividend after 67 consecutive years. It has lost $7.1 million in the first half of its fiscal year as sales fell by 8 percent, to $212 million.
Oneida officials have scheduled a conference call with industry analysts this morning to discuss the fiscal quarter that ended July 26. The company must negotiate changes in loan agreements or face the prospect of paying off its $230 million in long-term debts.
Oneida, based in the city of that name about 20 miles east of Syracuse, is a major supplier of china, glass and silverware for the food service industry and consumer markets worldwide. Buffalo China was founded in 1901 and was acquired by Oneida in 1983.
e-mail: fwilliams@buffnews.com
And, in most other places, they won't have the constant interference with management and management actions by union stewards. Can anyone up in that area check the local paper and sww what kind of strike/threatened strike activity this plant has had over the past ten years?
Good. Consumer wins.
It's quite handy for ignoring both you AND your assinine pictures.
Don't bother to reply. I just thought there might be others who might want to give it a try.
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