Zippo Closing Canadian Operations

Newsday ^ | June 2, 2002 | The Associated Press

[Willie Green]

BRADFORD, Pa. -- Lighter maker Zippo Manufacturing Co. will close and move production from its Canadian plant to its Pennsylvania headquarters at the end of July, leaving 22 people without jobs.

Bradford-based Zippo said the plant in Niagara Falls, Ontario, was opened in 1949 to avoid paying Canadian import duties, but is no longer needed because of the liberalization of trade laws.

Zippo president Greg Booth said the plant was cutting into profits and only accounted for a small portion of the company's production. Employees at the plant have been offered severance packages, Booth said.

[Willie Green]

Related thread: The Glitzy Return of the Zippo Lighter

Made in the U.S.A.!!!

[LibKill]

This is the ONLY case I have ever seen of a foreign country losing jobs because of NAFTA. (Canada is a a foreign country, sort of)

Usually it's the poor USA worker who takes the hit.

[Willie Green]

But the company never really developed many other products and thus has stayed stagnant.

Not true.

Although the windproof lighter is the most popular Zippo product, Zippo took its first step toward diversification with the introduction of a six-foot flexible steel pocket tape measure in 1962. The success of this product led Zippo to expand the line to its current product family of tape measures, pocket knives, money clips, writing instruments, key holders, ZipLight^TM pocket flashlights and the Fixxit^® pocket tool. Today, all of these items can be imprinted with company logos or trademarks.

Zippo has expanded its sales operations nationally and internationally through a wide network of sales representatives. In more than 120 countries throughout the world, Zippo is synonymous with American made quality and craftsmanship.

OTOH, American diploma mills have been cranking out cheap business degrees that aren't worth the paper they're printed on.

[nicepaco]

Just another company abandoning loyal employees moving to a country with lower taxes, wages, and regulations.
Of course Nicepaco thinks that if it's good for the consumer then it's the right thing to do. I wonder if the Bradford plant will need to hire anyone?

[The Great RJ]

I'm surprised the anti-smoking nazis haven't tried to put Zippo out of business because their product enables smoking.

[Lucius Cornelius Sulla]

another company abandoning loyal employees

Better than companies that abandon and loot their owners (their stockholders), whom they have a fiduciary obligation to.

[Gabz]

I'm surprised the anti-smoking nazis haven't tried to put Zippo out of business because their product enables smoking.

Hush - don't give them any more ideas - they are beating up on conpanies choosing to accomodate smokers enough as it is.

Personally - I love my Zippo lighter. I was heartbroken when I lost the "lady zippo" my husband gave me shortly after we got married - but it hadn't been engraved yet - so we've decided to hold off replacing it for a while!

[badfreeper]

"This is the ONLY case I have ever seen of a foreign country losing jobs because of NAFTA."

That's because the Canadian manufacturing sector was decimated by the FTA (became NAFTA when Mexico joined) and the high interest rate policies of the Bank of Canada in the early '90s. There just aren't that many manufacturing jobs left up here.

Unlike larger corporations, Zippo simply doesn't have the size to take advantage of the tax benefits of operating in both countries like, for example, the big 3 auto makers.