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Sylvania plant to phase out -- 97 workers to lose jobs over 2 years at Bangor site
BANGOR DAILY NEWS ^ | Thursday, October 31, 2002 | Deborah Turcotte Seavey

Posted on 10/31/2002 2:18:49 PM PST by Willie Green

For education and discussion only. Not for commercial use.

BANGOR - Osram Sylvania will close its precision components manufacturing facility here within the next two years and move its production of lead wires for light bulbs to Mexico. About 97 people will lose their jobs.

On Wednesday, after conducting two meetings with employees, plant manager Tim Magoon said that the workers were disappointed and that the closure of the facility was unexpected. In recent years, sales of lead wires had been down, he said, and more than 50 jobs had been lost through layoffs and attrition during the last few years.

Magoon complimented the workers on the quality of the parts made in the 42,000-square-foot facility alongside Interstate 95, but added that labor costs associated with making the lead wires are putting the company at a competitive disadvantage.

"From a cost situation, you can't make them in the U.S.," Magoon said. "With some products, it's cheaper to have them made overseas because of labor costs."

In a statement, Frank Santiago, executive vice president and general manager of Osram Sylvania's precision materials and components division in Danvers, Mass., said the Bangor closure is intended "to keep us financially healthy and competitive."

"Significantly lower labor costs in the Far East are having an especially negative impact on pricing for lead wires and, as a result, we can no longer manufacture this product competitively in the United States," Santiago said.

Osram Sylvania is buying a small Mexican company that already makes lead wires for another division of Osram. The Bangor operations will be transferred to that plant, called Mapresa, located in Monterrey.

Osram Sylvania's Bangor plant employs 79 hourly and 18 salaried workers. Magoon, who also is plant manager for Osram's Waldoboro facility, said that on average the Bangor employees have 18 years of experience. Layoffs will begin "at the earliest" in January, he said.

"These jobs do pay well," Magoon said. "I think for the area they're very competitive, probably above average." Magoon would not reveal average wages.

The pending Osram Sylvania closing follows a long string of plant shutdowns or job layoffs in the state because manufacturers have chosen to produce their goods in other countries. The list of layoffs includes 50 people at Osram's Waldoboro plant who were told in June that the work they do in Maine now will be done in the Czech Republic. Other job losses were experienced at the Hathaway shirt factory in Waterville, which shut down earlier this month and displaced more than 200 people, and at Great Northern Paper Co. in Millinocket, where 200 people were laid off last month.

Kent Inc. in Fort Kent, a manufacturer of blanket sleepers for infants and toddlers, could close within a month if it doesn't receive an infusion of cash. Company officials cite competition from U.S. manufacturers with operations overseas as the reason for possible closure and the layoff of more than 180 people.

More than 500 types of lead wires are made in Bangor for fluorescent, incandescent and other types of light bulbs. Osram Sylvania spokeswoman Cynthia Dooley said most of the light bulbs are used in businesses, and the company's primary customers have been builders or renovators.

But the construction of new office buildings has slowed, she said, and businesses trying to save on energy costs are not using as many bulbs.

"I've heard of businesses taking out every other light bulb to save on energy costs," Dooley said.

Earlier on Wednesday, Magoon said he had not contacted the state Department of Labor so its rapid response team could meet with workers about unemployment benefits, but he planned to do so soon. Also, Osram Sylvania will apply for federal job assistance benefits for people who lose their jobs because their work was moved overseas.

Osram Sylvania is the North American operation of Osram GmbH of Germany, the second-largest lighting manufacturer in the world and part of Siemens, a diversified international electrical and electronics company.


TOPICS: Business/Economy; Culture/Society; Government; US: Maine
KEYWORDS: globalism; nafta; recession; thebusheconomy
Who the heck will need lightbulbs when the United States generates its electricity from windmills anyway?

Maybe we can go back to making candlesticks!
Nah... bee-mites and Africanized honeybees will make beeswax too expensive...
Besides, with Zoellick shifting our Agriculture to South America, there's not gonna be much need for bee pollination anyway...

Hmmmmm...

I got it!!!
Maine! New England!!!!

We can go back to whale oil lamps!!!

1 posted on 10/31/2002 2:18:50 PM PST by Willie Green
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To: Willie Green
This is probably due to Maine taxing itself to death. SheLion has been posting threads about how Maine is in the process of committing suicide.

Regards, Ivan

2 posted on 10/31/2002 2:20:46 PM PST by MadIvan
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To: Willie Green
Another bunch of workers out of work because of Republican-supported, Bush-approved NAFTA legislation.

BTW EDS is laying off 1500 here in Dallas next month, jobs going off to India.

Thank God for NAFTA, H1B and overseas tax shelters for corporations who are no longer American, but 'extra-national'.

3 posted on 10/31/2002 2:30:13 PM PST by fogarty
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To: fogarty; MadIvan; SheLion
Thanks, Ivan... pinging SheLion for a heads-up.

fogarty: I saw the EDS anouncement, but passed on posting it.
The truth is: the high-tech, telecom, dotbomb, computerized financial services, etc. etc. sectors have been collapsing so badly that there is no way in creation I can possibly keep up. I post a lot about those industries as it is. Gotta deliberately select stories about other types of businesses just to get some variety in the discussion.

4 posted on 10/31/2002 2:47:34 PM PST by Willie Green
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To: fogarty
Free trade is horrible, just look at what it's done to Honk Kong and Singapore in the last 50 years!

Free Trade is destroying this country

Back to reality now...

5 posted on 10/31/2002 2:52:50 PM PST by CanadianFella
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To: Willie Green
Ain't that the truth. Richardson and Plano are nearing 18-20% unemployment in some sectors. The carnage is unbelievable. Engineers and manufacturing folks are moving out like a slow-moving wave, as their unemployment runs out and no jobs anywhere can be had at any salary. They are leaving thousands upon thousands of houses that cannot be sold because no one is buying except the speculators and real estate investors.

It is bad, and getting worse. The second bombshell from the airlines will soon go off - my prediction is American will have to layoff another 10,000 just to avoid bankruptcy proceedings.

Lockheed is the only game in town, and the amount of jobs they are creating amounts to maybe 1/100 of what's been lost.

Housing & Real estate are looking bleak and its gonna get a lot worse.

6 posted on 10/31/2002 2:55:45 PM PST by fogarty
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To: CanadianFella
just look at what it's done to Honk Kong and Singapore in the last 50 years!

No more SUVs for Maine! Let 'em pull rickshaws!

7 posted on 10/31/2002 2:57:20 PM PST by Willie Green
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To: Willie Green
Hell there isn' any problem the can all work Baldi's Mama when he becomes governor after angusih skips the state with the tresury.
8 posted on 10/31/2002 3:00:52 PM PST by dts32041
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To: MadIvan
This is probably due to Maine taxing itself to death.

Bite your tongue, MI! Those aren't taxes, they're investments in public-private growth for a secure Maine future!

9 posted on 10/31/2002 3:25:37 PM PST by Grut
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To: Willie Green
Its pretty bad when your state's Department of Labor has a "rapid response team" already in place.
Unions should try and organize in over in Asia. Only by raising their labor costs can jobs stay here.
10 posted on 10/31/2002 3:41:01 PM PST by lelio
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To: Willie Green
The sky is falling Willie alert!

This guy is a professional poster, who posts bad news about jobs wherever he can find them.

Ignore him.
11 posted on 10/31/2002 3:45:39 PM PST by MonroeDNA
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To: MonroeDNA
Perhaps if someone started posting good economic news we could ignore the issue that the US economy is in the toliet.
12 posted on 10/31/2002 4:03:41 PM PST by lelio
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To: Willie Green; Madame Dufarge; metesky; ozone1; pkmaine; Atomic Vomit; ROCKLOBSTER; mlmr; ...
Thanks for the ping, Willie Green!

aaaarrrggghhh

Oh hell. Let BALDACCI MAKE EM! That's all he is GOOD for!


13 posted on 10/31/2002 4:11:41 PM PST by SheLion
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To: MadIvan
SheLion has been posting threads about how Maine is in the process of committing suicide.

It'll be mass suicide if we elect Baldacci next Tuesday.

The tax and spend DemoRat has actually been running radio adds about how he's been down in Washington for the last eight years cutting taxes.

Good grief, what a pair of stones!

14 posted on 10/31/2002 6:37:06 PM PST by metesky
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To: metesky
First thing Baldi needs to do is appoint a Blue Ribbon Panel to study the problem, offer solutions. Maybe a "Maine Redevelopment Corporation" staffed with political hacks and modeled after Nigeria or Uganda.

What do you thing the percentage private/public can go before the dolts notice anything? 1 to 99%?

15 posted on 11/02/2002 5:22:30 PM PST by Leisler
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