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New layoffs affect Volvo plant in Virginia

A day after global employers announced more than 60,000 layoffs, companies with Virginia operations said jobs would be cut in the state.

The announcements include 650 hourly workers at Volvo Trucks North America in Southwest Virginia, 120 hourly jobs at a roller bearing manufacturer in Petersburg, 70 positions at a cabinet maker in Culpeper and 18 Goodyear Tire & Rubber Co. jobs in Radford.

Officials with Volvo Trucks North America said yesterday that the job cuts are necessary because of declining demand.

The 650 workers' last days on the job will be in March and April, company spokesman Jim McNamara said. About 1,600 workers build Volvo trucks at the plant.

The 1.6 million-square-foot Dublin plant is the largest Volvo manufacturing plant in the world. It has experienced steady decline in employment in the past several years. In 2006, nearly 3,200 people worked there.

McNamara said the company will provide outplacement assistance to the laid-off employees, in collaboration with the United Auto Workers union and the Virginia Employment Commission.

The Volvo Truck layoffs came five months after the company said it was moving production of Mack Trucks from the Dublin plant to a factory in Macungie, Pa.

In the Tri-Cities, Amsted Rail Co. Inc. has laid off 120 hourly employees at its manufacturing plant.

The company, formerly known as Brenco Inc., said in a statement that the job cuts were necessary because of "severely deteriorating economic conditions that have affected most industries."

Amsted Rail makes tapered roller bearings for freight railroad cars. The company has had a presence in Petersburg for 60 years.

Rick Louthan, the company's vice president of operations, said in a statement that the company attempted to avoid layoffs through a hiring freeze, attrition, discontinuing the use of contract workers and a reduction in overtime, but the pace of deterioration has been more severe than expected.

The company previously announced 40 job cuts from its Petersburg work force of more than 400 in June 2007, citing a decline in demand for railroad cars in North America.

The company said it would attempt to minimize any other job cuts by reducing hours for the remaining hourly employees.

At its Culpeper facility, cabinet manufacturer Merillat laid off 70 employees — about 20 percent of the plant's work force — as a result of the poor economy, a company spokeswoman said.

Susan Cross, communications manager for Merillat's parent company, Masco Builder Cabinet Group, said all of the jobs eliminated were held by hourly employees. The downsizing will leave the manufacturing plant with 278 salaried and hourly employees.

Merillat is a kitchen and bath cabinet manufacturer; the Culpeper facility is strictly a cabinet assembly plant. Masco manufactures two brands: Merillat and Quality Cabinets, with Culpeper's plant one of 12 facilities in the United States. Cross said Merillat employs 4,000 people across the country.

In another sign of the automotive industry's woes, Goodyear Tire & Rubber said yesterday that it is closing its rubber-mixing plant on Radford's West Main Street. The plant, which produces rubber for Goodyear's other factories, laid off 31 employees in December and plans to lay off the remaining 18 when it closes Jan. 30, Goodyear spokeswoman Amy Brei said.

Eric Benjamin, operations manager at the plant, said it has been in operation for half a century and was owned and operated by Brad Ragan Inc. before Goodyear bought it about five years ago.

Brei said the plant is a victim of the economic downturn: "We just don't need the capacity any more."

Staff writers Rex Bowman and John Reid Blackwell and Media General News Service contributed to this report.

Richmond Times-Dispatch |