Tuesday, July 27, 2004

Tower Automotive will eliminate 67 jobs from its Bowling Green facility and move production of its suspension-link-arm business to Milan, Tenn., according to Bev Pierce, spokeswoman for Tower.

Seventeen jobs in the painting and coating operations will remain at the Bowling Green facility at 311 Vanderbilt Drive. Some of the remaining employees will need to switch positions within the company, Pierce said Monday.

The transfer of this product is part of a restructuring of our North American operations to gain production efficiencies and strengthen our competitiveness, Tom Pitser, Tower Automotives leader of North American operations said in a press release.

The move comes as the Novi, Mich.,-based company finds itself under increased fiscal pressure.

In its second quarter ending June 30, it reported a net loss of $2.7 million versus a net income of $2.6 million for the period last year, according to the companys financial report.

At the same time, sales increased to $783 million from $743 million in the year-ago period.

Of the positions to be eliminated, about 23 are held by temporary workers, Pierce said. Roughly 43 Tower employees full-time jobs are being eliminated.

The employees received notification Monday afternoon, and the company will start meeting with them individually today to help them finding new jobs.

Were going to make every effort to assist the employees that are affected, Pierce said, To provide re-education, career counseling and other assistance.

The layoffs are expected to be complete by October when production moves to Milan, which currently employs 331 people and produces a variety of automotive products, including control arms, cross members, engine cradle assemblies, heavy truck stampings, side rails and welded assemblies. Milans hourly workforce is represented by United Steel Workers of America.

Jim Hizer, President and CEO of the Bowling Green Area Chamber of Commerce, said the news is disappointing.

Our hearts and prayers go out to the workers and respective families, he said. The good news is our local economy is extremely strong right now, and there should be opportunities for the displaced workers to find other employment.

Hizer said an announcement like this is a reminder to everyone to remain vigilant and aggressive in economic development efforts.

This fall we will be unveiling a southcentral Kentucky marketing plan, which will be designed to take our overall economic development marketing efforts to a new level, he said.

Bowling Green Mayor Sandy Jones agreed.

This is the very reason that we continually strive for avenues for economic development, she said. You can not sit and rest on your laurels.

She said one advantage in this community is that the industrial base is diverse, and multiple industry sectors are represented.

Hizer said the loss is a reminder that it is vital for the chamber to have aggressive business-retention efforts aimed at keeping the jobs that already exist in Bowling Green.

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