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Arrow Automotive Industries Announces Closure of Manufacturing Plant

29 September 1998

Arrow Automotive Industries Announces Closure of Spartanburg, South Carolina Manufacturing Plant; Company to Assist Workers in Finding New Jobs


    SPARTANBURG, S.C.--Sept. 28, 1998-- Arrow Automotive Industries, Inc. announced plans today to permanently close its production facility in Spartanburg, South Carolina. All 423 Spartanburg-based Arrow employees have been given a 60-day notice that their jobs will end with the plant closing on November 27, 1998.
    The plant closure comes after months of negotiations and continuing efforts to find a suitable buyer for the Spartanburg facility. At the beginning of this year, Arrow contracted with the investment firm ADVEST, Inc. to investigate strategic opportunities for Arrow, which included identifying joint venture partners or the possible sale of the Company. These efforts became necessary to meet increased competitive challenges in the automotive parts industry.
    Last week Arrow signed a non-binding letter of intent to sell certain Arrow operating assets, including its electrical parts division and its clutch and crankshaft remanufacturing division. Unfortunately, since the majority of the electrical business is in Arkansas, the buyer's plans do not include the continued operation of Arrow's Spartanburg plant. Arrow will continue to own the building, equipment and land in Spartanburg, and will continue to actively seek a buyer for the facility and property.
    Arrow plans to assist Spartanburg workers in finding new employment during the 60 days to come. This assistance is expected to include contacting other area manufacturers, hosting a job fair, helping employees with interviewing and resume writing skills, allowing them time-off for interviews and inviting potential employers into Arrow's plant to meet and speak with employees. In addition, Arrow will seek any available assistance from state and local government and business organizations in helping find new jobs for employees.
    "The decision to close Spartanburg was a very difficult one for us to make and we deliberated long and hard about it," said Arrow President and CEO Jim Osment. "Unfortunately, we have run out of options and time. Our Spartanburg facility has been a part of the community since 1952, and many of our employees have been with us for many years. We are committed to helping them find other opportunities and will work with them to do so."



    Arrow Automotive Industries, Inc. (ASC:AI) remanufactures a variety of replacement parts for domestic and imported vehicles for distribution throughout the United States and Canada.