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Published: March 27, 2008 03:54 pm
Sumitomo closing Wintec operation
More than 100 jobs will be lost at Edmonton site
By GINA KINSLOW
Glasgow Daily Times
GLASGOW —
More than 100 people employed by Sumitomo Electric Wintec America Inc. will soon be without a job.
Company officials broke the news to employees Wednesday morning that the company will end manufacturing operations at its Edmonton magnet wire plant by June 2009.
“We are very sorry to bring this terrible news to Edmonton,” said Yukihide Ito, SEWA chairperson. “If this situation could have been avoided, SEWA would have made another decision. There is no choice but to eliminate production of magnet wire in Kentucky, because the costs to manufacture our products in the United States are too high for us to be competitive in this industry.”
The company’s magnet wire production is being moved to other countries including China, Malaysia and Indonesia, said Dana Simmons, a company spokesperson.
“The Sumitomo Wintec plant is the only Wintec plant in the U.S.,” she said.
The magnet wire the company manufactures has historically been used for televisions and small appliances, Simmons said. However, there is a type of the wiring that is now being used by the automotive industry.
Eligible employees will receive a severance and benefits package, which will include subsidized healthcare benefits, Simmons said.
“Also the company is going to provide on-site assistance for career transition,” she said.
City and county officials were disappointed to hear the news.
“It’s a hard hit for Metcalfe County,” said Judge-Executive Greg Wilson. “It’s going to be a terrible effect on the county.”
Wilson, along with Mayor Howard Garrett, expressed their concerns Wednesday for the employees and their families.
“The mayor’s office, the county judge-executive’s of-fice and the Metcalfe County Industrial Authority have begun aggressively working to find another company to locate here to replace those jobs as soon as possible,” Garrett said.
Officials will be contacting state agencies about assistance for the employees.
“We will do our best to provide for our displaced workers and their families,” Garrett said.
“SEWA has been a good citizen to the city and has been a part of the community for many years, Garrett said.
“We appreciate the contributions they and their employees have made to this community,” he said.
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