Bentonville Kennametal closing
Posted on Wednesday, October 1, 2008
BENTONVILLE — For nearly 50 years, the Kennametal manufacturing facility at 1601 E. Central Ave. has been up and running. Come Dec. 31, the campus will go silent.
On Tuesday, the approximately 120 employees at the Kennametal facility here were told the company’s corporate headquarters in Latrobe, Pa., decided to close the Bentonville plant by the end of the year. According to Christina Reitano, Kennametal corporate communications manager the decision is part of a company wide restructuring effort to make Kennametal more competitive.
Reitano said the restructuring will affect several of the company’s other facilities around the country, but no cuts are expected to take place at the Rogers Kennametal facility, which employs more than 520 workers.
“ These restructuring steps have been in the works for some time now, ” Reitano said. “ It has nothing to do with the quality of work being done in Bentonville. It’s about transferring production to other existing facilities to become more efficient and competitive. There will be a phased move of the equipment and product transfer from Bentonville, with a closing scheduled for Dec. 31. ”
According to Reitano, the Rogers Kennametal will be the recipient of at least some of the product and equipment transfer occurring across the company. She said the decision to close the Bentonville Kennametal facility will result in $ 3. 2 million in annual savings to the company.
Kennametal specializes in metal cutting, milling and turning, and is a tooling-systems manufacturer, creating advanced materials for the mining and construction businesses.
“ I am saddened because of this decision, ” Bentonville Mayor Bob McCaslin said in response to the announced closing of the Kennametal on East Central Avenue. “ This is a loss for the 120 employees and a loss for the city of Bentonville. Our city has enjoyed the benefits this employer has brought to our area for many decades. We will miss Kennametal’s presence in Bentonville. ”
Kennametal will work to provide support services, including outplacement, for the employees affected, Reitano said. But it is not expected that all of those employees will find work within the company following the Dec. 31 closing.
“ Everyone is talking about the economy right now, but that wasn’t the overriding factor here, ” Reitano said. “ Back in April, the company announced an acceleration of its restructuring efforts. All of this is being done to position ourselves and become more competitive. ”
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