HT News

November 3, 2009

Freeland losing 225 workers

Garland Commercial Industries is expected to shut down in mid-2010.

By Andrew M. Seder aseder@timesleader.com
Times Leader Staff Writer
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FREELAND – About 225 employees at Garland Commercial Industries, by far Freeland’s largest employer, were told Monday that Garland’s parent company has decided to close the manufacturing plant on July 1, 2010.

Wisconsin-based The Manitowoc Co., which purchased Garland last year, made the decision based on consolidation plans and the poor economy.

The Freeland plant manufactures commercial ovens, griddles, grills and commercial counter-top cooking equipment for restaurants, hotels and institutions. It opened in 1974 on South Street and expanded in the 1980s.

Peter MacFarland, Garland’s vice president and general manager, said employees were informed Monday morning and were allowed to go home at noon “because of the disappointing news.” He said the second shift was told they could take the day off. But all workers will report to work today, MacFarland said.

Dennis Rooney, Manitowoc’s vice president for human resources, said a “several month review” led to the “painful but necessary decision” that was announced Monday.

He said expansion and consolidation were looked at but the Freeland plant lacked room to grow and the decision was made to close it.

Manitowoc will be transferring production of its Garland branded products from the Freeland facility to other Manitowoc facilities across the country, according to Rooney.

Freeland Mayor Tim Martin said the loss of property taxes and earned income taxes equals about one-fifth of the borough’s operating budget.

“That hurts,” Martin said. “This is something that affects more than just Garland workers and their families.”

He said it also affects borough businesses.

“You don’t realize the loss until you think about it. How many of the local restaurants do those workers get their lunch from every day?” Martin said. He pointed out that Feussners Ford, right across the street from Garland, was a place workers could drop their cars off for service, walk across the street to work, then walk back at the end of the day to get their vehicles.

“A lot of local businesses are going to be impacted by this,” Martin said.

He said he plans to gather company officials and economic leaders to see if they can start marketing the plant to other manufacturers in an effort to keep some of the jobs in town.

“We’re 15 miles from three major interstates,” Martin said. “I’d love to see if we can get some kind of industry back in there.”

Rooney said it’s too early in the process to begin making plans for the future of that facility.

He said meetings will be held today with employees to discuss potential positions within the company or to help prepare them to move on to other companies. He said the decision to tell employees about the closing nearly eight months in advance was “the humane side of it.”

“We don’t want to cheat employees that way,” he added.

Manitowoc, which makes cranes and foodservice equipment, reported sales of $881.5 million for the third quarter of 2009, 20 percent below $1,106.8 million in the third quarter of 2008. The company blamed most of the decline on a 52 percent slide in sales at its crane division.

Andrew M. Seder, a Times Leader staff writer, may be reached at 570-829-7269.

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