Three Colfor plants to cut 589 positions

By D.a. Wilkinson

SALEM — Three area manufacturing plants will have lost or will lose a total of 589 hourly and salaried workers, according to a company spokesperson.

Colfor Manufacturing has plants in Salem, Minerva and Malvern.

The new reductions are to begin in June.

Renee Rogers, communication’s director for American Axle & Manufacturing of Detroit, the parent company, said almost all of its business is tied to General Motors and Chrysler.

American Axle recently had to restructure and refinance its operations because of the declines in those automobile companies.

If the economy picks up, Rogers said, the employees will be called back.

She did not immediately have breakdowns of the number of workers previously laid off at the three locations or how many more will go on furlough.

Mayor Jerry Wolford has received the notification about the temporary cuts.

He was philosophical and noted that it was a relatively small number of workers.

Cuts in local jobs may not show up in the city’s income tax figures for some time, and possibly into 2010, the mayor said.

Audrey Null, the executive director of the Salem Area Chamber of Commerce, said local economic development officials had tried to talk to local plant officials with little success. Colfor did not elect to join the chamber, which is trying to expand its economic development programs.

Null noted there could be a local ripple effect from the continued layoffs.

However, she said the chamber can refer displaced workers to the Columbiana County One-Stop in Lisbon that can help idled workers find jobs. The program recently received extra funds to help retrain workers or educate new ones.

The New York Stock Exchange recently told American Axle that it has fallen below the exchange’s continued listing standard. The stock exchange requires that the average market capitalization of a listed company be not less than $75 million over a consecutive 30 trading-day period and that stockholders’ equity be not less than $75 million.

The company plans to regain compliance.

COLFOR MANUFACTURING

Fast facts

Colfor Manufacturing, East Perry Street, Salem, is a part of American Axle & Manufacturing, headquartered in Detroit. Here is some background on AAM:

Founded in 1994, AAM is a leading automotive supplier of driveline and drivetrain systems and related components, chassis systems and metal-formed products.

AAM has 32 locations around the globe serving more than 100 customers on five continents.

The company has invested more than $3.4 billion in facility and equipment modernization since 1994.

The company’s full-service product research and development provides for precision engineered, advanced technology products, manufacturing processes and systems.

Electronics are integrated in more than 80 percent of AAM products.

Source: Company Web site, www.aam.com