Newsletter #054 (View other news stories)
SIXTY WORKERS SACKED IN CLARK RECOVERY
LEXINGTON, United States
Friday, 26 Apr 2002
Clark Materials Handling Company, which is climbing out of bankruptcy, will close its Pell City, Alabama, manufacturing plant as part of its recovery plan, says president Kevin Reardon.
A Lexington Herald Leader report said the plant would close in October, leaving 60 workers unemployed. Production would move to Korea, leaving only sales, marketing and distribution in the US, the report said.
Clark took over the Pell City plant, where it makes warehouse forklifts, and a plant in Canada, in 1997 when it acquired Blue Giant. The Canada plant was sold in 1999.
Mr Reardon said the decision to close the plant came after monthly sales dropped from USD2.5 million, or 150 units, in 1997, to USD700,000, or 30 units, last year.
No further layoffs were expected, but closing the plant would save the company USD1 million a year, Mr Reardon said. Clark laid off more than 400 workers at its Lexington plant and filed for Chapter 11 bankruptcy protection in 2000.
Forkliftaction.com News understands all employee entitlements will be paid. Clark plans to file a recovery plan with a Delaware bankruptcy court by year's end, Mr Reardon said.
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