The Herald, Sharon, PA Published Wednesday, April 2, 2003

Oxford Automotive closing plant


130 employees
will lose their jobs

§   §   §
By Michael Roknick
Herald Business Editor

Yet another local plant is closing its doors.

Oxford Automotive Inc. said Tuesday it is closing its Masury plant, resulting in the loss of 130 jobs.

During its heyday six years ago, the plant -- previously known as Howell Industries -- had 450 workers. But employment has steadily fallen as automakers began shifting their buying habits.

A deadly blow for the operation occurred recently when one of the Big Three auto manufacturers it supplies moved new-vehicle production to a new plant, said Andy Cummins, vice president of corporate communications for Oxford. He declined to name the manufacturer.

"This has nothing to do with the temporary downscaling going on in the auto industry,'' Cummins said of the closing.

Oxford employees were notified Monday that the plant would be closed. The notification is required under the federal 60-day Plant Closing law. Production will gradually be phased out, with operations to cease by October.

Another factor in the closing is that the auto parts industry has changed dramatically in recent years and Oxford finds itself having to adapt to the new environment.

Primarily a stamping operation that makes parts used in auto steering assemblies, the Masury plant finds itself with blistering competition.

"The new business is getting into more complex welding and assembly with the just-in-time delivery concept,'' Cummins said.

Oxford is building a plant in Alabama to meet that business model.

"There's no cost-effective way to convert the Masury plant to the type of operation we need,'' Cummins said. "It doesn't make sense to keep it open.''

Additionally, there's no way the Alabama plant could have been built in western Pennsylvania or eastern Ohio because its parts are for the nearby Mercedes plant, he added. Like other car makers, Mercedes required this particular kind of operation to be located within 20 miles of its car assembly plant.

Scheduled to open in October, the Alabama plant will have 400 trucks traveling daily to the Mercedes plant, Oxford expects.

While complaints over higher costs for wages, health care, workers' compensation and taxes are frequently heard for why new manufacturers aren't locating here and old ones are closing or moving, none of those was a factor with Oxford, Cummins said.

"We had a very good work force at the plant and we've heard nothing but good things about the worker-management relations,'' he said. "Workers' comp, health care and taxes didn't enter into the picture.''

Oxford has hired a firm to help displaced employees write resumes and search for work.

"We'll do whatever we can to help these people find new jobs,'' Cummins said.

A privately held company, Oxford employs 7,000 in 37 plants in 10 countries and has $1 billion in revenues.

United Steelworkers Local 1618-02 represents production workers at the plant. Union leaders were not available for comment Tuesday afternoon.

In the last month, Wheatland Tube Co. announced it would close its mechanical tube plant in Wheatland and Werner Co. said it would fold its ladder operation in Sugar Grove Township.

With the addition of Oxford, a total of 760 jobs are being lost in the area.



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