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BREAKING NEWS: MasterBrand Cabinets to close here
335 employees affected by closing
Friday, August 3, 2012
By DEBBIE HALL - Bulletin Staff Writer
MasterBrand Cabinets Inc. is stopping production in its Martinsville facility on Aug. 10, according to Deputy County Administrator Tim Hall.
The company plans to be out of the building by the end of September, Hall said.
There are 335 employees affected, Hall said, and noted that he believes those employees are all full-time. Earlier, Hall had said 345 employees were affected, but the company lowered that figure to 335 later Friday morning.
Hall said he was told by company officials that the decision to close was market driven, and based on a lack of demand for the company’s products.
In a news release from its Jasper, Ind., office, MasterBrand stated that the closing of the Martinsville facility is part of a realignment of its manufacturing operations for semi-custom cabinetry.
The company said it is adjusting capacity to marketplace conditions to compete more effectively in the challenging home remodeling market.
“Regrettably, MBCI continues to be impacted by an uneven recovery in the highly discretionary home remodel market. After a thorough review of our manufacturing operations, we’ve made the decision to consolidate the production of our semi-custom cabinetry offerings into other U.S. facilities to maximize current production capabilities and geographic advantages. We remain focused on outperforming a challenging market, and have enough capacity in our remaining facilities to see us through a recovery in this market,” said Greg Stoner, president, MBCI.
The announcement impacts about 335 production, maintenance, and management employees. All employees affected by the closing of the Martinsville plant will continue to receive pay and benefits for the next 60 days.
“We understand this decision will have a difficult impact on our employees,” Stoner said. “We appreciate their dedication and hard work, and this decision should in no way negatively reflect upon their performance.”
MasterBrand has engaged the services of an outplacement firm to help facilitate employees’ transition into new employment opportunities.
Henry County Board of Supervisors Chairman Jim Adams said the company assured the county that “this is completely driven by excess capacity in a soft market.
“They were extremely complimentary of our community, the work force and the cooperative spirit here. But in the end, the market always determines the path forward,” Adams said.
He added that the county is “working hard to create new opportunities, and we anticipate some positive news very soon.”
Ninth District U.S. Rep. Morgan Griffith, R-Salem,said his office will help displaced workers in any way possible “to ensure a quick transition to new opportunities.”
For more details, check this website and the Sunday edition of the Martinsville Bulletin.