By BOB GIBBINS
American Woodmark announced Tuesday afternoon it will suspend operations in Tahlequah until market conditions improve and additional capacity is needed.
Richard Hardy, human resources director for American Woodmark Corp., declined to release specific details about the Tahlequah operation. He did say the affected work force will be allowed to apply for open positions at other Woodmark facilities, and will be offered economic assistance through a severance pay and benefits package.
The decision affects approximately 100 workers. Although Hardy would not say how many employees currently work at the Tahlequah facility, 140 people were on the payroll there in late October, when the company announced plans to lay off 51. The layoff occurred Nov. 3.
The news came as a disappointment to Tahlequah officials Tuesday.
“The one bright spot is that they’re only suspending operations here, and they’re completely closing two other locations,” said Tahlequah Area Chamber of Commerce Executive Director David Moore.
“I think that’s a tribute to our work force here.”
Moore, who is a board member on the Tahlequah Industrial Authority, has been working with Work Force Oklahoma and other entities to help the employees make the transition.
Mayor Ken Purdy confirmed he was notified late Monday that the production facility will be closed indefinitely.
“The company said it intends to ‘mothball’ the plant, continuing ownership of the building, and has every intention of bringing the plant back into production when the economy – especially the home-building and renovation industry – bounces back,” Purdy said.
The mayor said the closure is expected to take place over the next two or three months.
“We will be continuing to discuss their closure plans to ensure that provisions are made for transition of the displaced workers,” Purdy said.
When the November layoff was announced, AWC Corporate and Marketing Communications Vice President Bryan Earl said blamed Hurricane Ike on the Texas coastline and the continued weakness in the new-home construction market.
The announcement Tuesday was attributed to the continued housing slump.
The closure of two facilities and the suspension of operations in Tahlequah leaves AWC with 11 manufacturing facilities and “well-positioned to full participate in a housing recovery on the other side of the economic cycle,” a press release states.
“The Tahlequah facility is a modern and efficient plant with long-term potential,” Kent Guichard, AWC president and CEO, said in the press release
“Unfortunately, the primary regions serviced by this plant have been especially hard-hit by the economic downturn.
Considering the high cost of transportation outside the plant’s natural service region, we have made the decision to suspend operations until such time as demand can support the operation.”
He also expressed his gratitude to the entire team in Tahlequah.
“The employees have kept the plant viable, despite decreasing volumes for longer than could have been expected,” Guichard said in a prepared statement.
