Electrolux to close plant in Greenville

WoodTV ^ | 01/16/2004

[RockChucker]

Electrolux employees began arriving at the plant well before the scheduled announcement to learn the fate of 2,700 Greenville jobs. This morning at 7:30 those employees learned that Electrolux will close its Greenville plant.

Last Friday was to be the day, but the deadline was postponed one week to allow talks to continue between the company, the city and the union. This morning at 7:00 a.m. Electrolux was scheduled to make the announcement; however, company officials delayed that announcement until 7:30 a.m. When that announcement finally did come, it wasn't what anyone in Greenville wanted to hear.

That's just the city of Grand Rapids. Ice Mountain water bottleing plant, the largest in North America, will likely be shutting down... and they just built the plant 1 year ago.

Electrolux to close plant in Greenville

In a prepared release, Electrolux announced that some products manufactured in Greenville will be moved to a plant in Anderson, South Carolina, while other lines will be moved to a plant in Mexico. In the meanwhile, operations in Greenville will continue into 2005.

The company says that it carefully considered the city's proposal to keep the plant in Greenville, but that in order to remain competitive it must move operations to Mexico.

Electrolux says it lost 38 percent of its profits in the third quarter and it can save $81 million a year by shuffling off to Mexico.

For Greenville, this means the loss of 2,700 jobs and $437,000. That's about a 20 percent blow to its tax base. For the region, the overall economic impact each year will affect the service industry and Electrolux suppliers, amounting to $243 million. The numbers are daunting especially for Electrolux employees

[1rudeboy]

My mom has an Electrolux, and it sucks well. But you have to order replacement bags (can't find them in a store). What sort of a business-plan is that?

[Fester Chugabrew]

Now that's what I call a giant sucking sound!

[RockChucker]

True.... the Lifesavers is in Canada.

And SCS and HMI are 1/2 their former selves and mostly just fired people, though they have a facilities in Mexico they have yet to really make the move.

SCS has hinted at moving off shore and keeping their HQ in Grand Rapids.

I was more appalled at the manufacturing downturn in West Michigan. I don't have answers.

[CSM]

The unions cause much more damage than if you add up all of these extreme cases you list. The auto industry is a great example, if you compare efficiency, the UAW plants take 2 times as long to assemble a car than the non UAW plants. That is killing the American auto companies. At the same time, they demand garunteed jobs and job growth. The ultimate goal of all unions is to be the least efficient labor resource available and to set up a contract that does not allow the company to become more efficient. All that does is make that company uncompetitive and it will eventually be killed by the more efficient company. The end result is the loss of ALL of the union jobs!

[newcats]

With these closings, that's less members paying into the union coffers.

And more in unemployment lines taking more of my tax money.
Sorry, I would rather the $$ go to the unions than out of my pocket.

[harpu]

Flashing lights, Willie! Time to update your 'sky is falling' alert!

[freeangel]

You do have a point that in recent years greedy ceo's and money managers have been able to bilk investors out of a whole lot of pesos. And I rather liken them to the unions and their greedy managers who have been doing that to companies(and their investors) for a whole lot longer. I saw them destroy the steel city and I have seen them destroy the education system in this country so that many of our children are about as educated as the ILLEGALS who are being invited to stay. I have as much respect for unionsm as I do a rat turd.

[leadpencil1]

I guess they could stay put and go out of business. It seems like a no win situation.

[general_re]

I think it's the cachet of their "deluxe" brand - you have to mail-order bags because it's a "premium" cleaner. LOL. Maybe they have the bags at Saks or Lord & Taylor or something ;)

[Xenalyte]

Electrolux to close plant in Greenville

That sucks.

(Was I the first to say it?)

[Hegewisch Dupa]

Remind me to ping you when I find a story on lay offs at The Bunny Ranch

[em2vn]

The point is clear. Hourly employees have a vested interest in the success of a company. Where as, the current crop of senior executives, in a general sense, clearly show concern only for their immediate financial gain without regard for the long term effect on the nation, the company or the employees.
The same sentiment is expressed by those fools who says they only purchase according to price without considering the source of the item. Those who purchase from communist China when an American product of equal or greater quality is available, only provide the commnists with further encouragement to continue in their murderous, communist ways. Every dollar spent on a communist chinese product is another dollar used to provide the communist military with ammunition in the drive for would domination.

[11th Earl of Mar]

It is the office furniture industry.

Office furniture is the most descretionary expense some companies have. On a remodel job, a company can wait a long time before getting rid of "outdated" furniture.

[RockChucker]

Actually, they were profitable. It's just that they are MUCH more profitable in Mexico.

Eventually, they would become less profitable as their competitors (who already are in Mexico) lowered the prices.

That's the prob.

[leadpencil1]

Every dollar spent on a communist chinese product is another dollar used to provide the communist military with ammunition in the drive for would domination.

How are you going to remove the "communist" component from your car,TV, camera, coffee maker etc..?

[ArGee]

And yet people on FR still defend NAFTA, etc.

While there may be problems with globalism, they should not be discussed on a thread about an Electrolux plant closing.

Electrolux isn't an American company. The plant only existed in the first place because of globalism.

I wonder if people in Sweeden were complaining about "that giant sucking sound" when the Greenville plant was opened?

Shalom.

[11th Earl of Mar]

Also, the ICE MOUNTAIN water bottling plant?

Are you referring to the Big Rapid's water plant what was shut down because of environmental pressure regarding "stealing of ground water"?

[ArGee]

What was wrong with good old Ma Bell and those reliable dial phones and real live operators to help us.

Not only that, but those phones had cords. You didn't have to worry about losing anything because the handset was connected to the base and the base was connected to the wall. If the phone rang you always knew where to find it. Now, when my phone rings I have to look all over for it.

It's those furreners ruining everything, that's what it is. Close the borders, buy American, and put cords on your phones!

Shalom.

[Xenalyte]

Please do - I have four great jokes just waiting for that thread!