Bridgestone/Firestone Announces Potential Decatur Plant Closing
NASHVILLE, Tenn.--June 27, 2001--Firestone will be conducting a media conference call at 10:30 am EST/9:30 am CST today to the information in the attached announcement. To access the call please use the phone numbers below.800-289-0746 (toll free)
913-981-5573 (toll/international)
Title: Bridgestone/Firestone
Confirmation Number: 436852
| -- | Plan is most effective response to economic downturn, decline in demand and company's excess tire production capacity in U.S. |
| -- | Bridgestone/Firestone requests that good-faith negotiations with the United Steelworkers of America begin immediately |
Bridgestone/Firestone, Inc. (BFS) today announced that it has delivered a "Six Month Notice of Potential Plant Closure" relating to its Decatur, Ill. plant to representatives of the United Steelworkers of America (USWA). The company cited the need to reduce production capacity in the United States to more effectively match tire production to demand and to strengthen the company's core operations. While no final decision has been made, the company advised the USWA that the most feasible way to attain the necessary U.S. production level is to close its Decatur, Ill. tire plant.
With delivery of the notice to the USWA, the company also expressed its desire to immediately enter into good-faith negotiations with the union regarding the potential plant closure, as called for under the terms of the collective bargaining agreement that covers USWA workers employed at the plant. According to the notice, if the plant closing takes place and if it proceeds on schedule, the effective date of the closure will be no later than December 31, 2001.
"While we are encouraged by the response of our customers to our commitment to rebuild the Firestone brand, our tire plants are not running at capacity due to a number of factors including customer demand and an economic downturn," said John McQuade, division vice president of BFS manufacturing operations. "As part of our overall review of company operations we've been evaluating how we could most effectively respond to this situation. It just isn't efficient to reduce shifts at all plants or to keep running all of our plants at lowered production levels. The most effective way to address this issue is to close one plant and raise production to levels nearing plant capacity at our other facilities."
The Decatur plant, built in 1942, was designed to make tanks for the U.S. Army during World War II. Firestone bought the plant in 1963 and modified the facility to build tires. It has been in continuous production since and is the oldest of Bridgestone/Firestone's passenger/light truck tire plants. Approximately 1,500 employees and contractors are currently working at Decatur.
"This will be a very difficult decision to make," said McQuade. "We want to assure our employees that we recognize, and will try to deal with, the serious toll this may take on them, their families and the community."
"Our entire company is committed to rebuilding this organization and the Firestone brand," said Mike Gorey, BFS corporate controller. "In order to keep that promise, this company must be financially strong and viable. This is a necessary, but painful step to ensure our continued financial health and viability."