SUMMITVILLE TILES Company lays off 39 workers, ends glazed mosaic production
The company is in 'a titanic struggle to survive.'
SUMMITVILLE -- Summitville Tiles is ending the production of glazed mosaic tile here, resulting in the layoff of 39 workers.
David Johnson, company president, said in a written statement Friday that the cutbacks are painful but critical to preserve the company's core business and remaining 300 jobs.
The layoffs, which are effective Aug. 15, follow other cutbacks that have been forced by low-priced imports. The company employed 600 two years ago before it started consolidating and getting out of unprofitable lines.
The company said production of glazed mosaic tile is being stopped at the Summitville plant for an indefinite period. Officials said they would not comment beyond what was said in the press release.
It said the company will focus its resources on unglazed quarry tile, acid-resistant industrial floor brick and precision-cut thin brick, all of which are made at its plant in Pekin, Ohio. It also will continue to operate a plant in Minerva, which makes ceramic tile installation materials.
Seeking state loans
Johnson said the company will continue to seek $3.5 million in low-interest state loans from the Ohio Department of Development. The company wants to restructure its long-term debt and upgrade its Pekin plant.
"This company is in a titanic struggle to survive in today's global economy," Johnson said. "If we did not believe that we could survive, however, we would not have been taking all of the pains that we have taken over the past 18 months to right size the company."
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