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September 28, 1999Salisbury Post; Rowan County, NC

Local News

Oakwood layoffs to hit Rockwell and Richfield

SALISBURY POST

           
Facing a glut in the mobile home market and demand lagging, Oakwood Homes Corp. announced Monday it will layoff 1,300 workers nationwide, including 60 at its Rockwell plant and 70 in Richfield.

The layoffs will leave 230 employees at the Rockwell plant, which will keep two production lines operating, according to Jo B. Andrews, a spokeswoman in the Greensboro office.

Employment at the Richfield plant, which already had eliminated one production line, will drop to about 200 workers, Andrews said.

Company officials told employees at the Rowan and Stanly plants about the layoffs Monday morning, Andrews said. The company said employees who are laid off can try to transfer to other Oakwood plants, and the company is offering to subsidize continued benefits for people losing their jobs.

This is the second major layoff that Greensboro-based Oakwood has announced in recent months. In July, the company said it was closing one of the Richfield production lines and laying off 145 people, as part of a larger layoff of 695 people in plants across the country.

The changes announced Monday should be complete by Friday.

The changes affect 10 of the company’s 29 manufacturing sites. The plant in Gainesville, Texas, will close, and Oakwood will consolidate two production lines into one at plants in Etna Green, Ind.; Hermiston, Ore.; Hillsboro, Texas; Moultrie, Ga.; and Navasota, Texas.

The company is reducing production at its plants in Rockwell, Richfield, Pinebluff, N.C., and Pulaski, Tenn.

In a written statement, William G. Edwards, Oakwood’s president and chief operating officer, said Oakwood and other companies within the mobile home industry are feeling the “generally soft industry conditions.”

“The difficulties facing the manufactured housing industry have been well publicized,” Edwards said. “The industry is characterized currently by an excessive number of retailers and high inventory levels. We deeply regret the impact this has had on our exceptional employees in these locations.

“We believe, however, that this effort, which we hope is temporary, maintains the company’s presence in our core markets and positions us to take advantage of improved industry conditions when they present themselves.

 

 

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