Van Dorn Demag Corp. is the latest plastics machinery maker to announce layoffs, as the Strongsville, Ohio-based injection press maker told employees June 29 it was cutting 100 jobs, or about 14 percent of its total work force.
Spokesman Bob Spreat said the layoffs will come from all Van Dorn Demag locations, including the main assembly plant in Strongsville and two machining operations in South Carolina, in the cities of Fountain Inn and Duncan. The company had about 700 total employees before the layoffs.
In addition to the layoffs, Van Dorn Demag is reducing the pay of all salaried employees by 5 percent.
``That's going to last until we feel market conditions improve,'' Spreat said.
Van Dorn Demag joins several machinery companies, including Milacron Inc., Engel Machinery Inc. and HPM Corp., that have laid off workers this year to cope with what many are calling the worst market conditions in a decade.
U.S. shipments of injection presses plunged 42 percent in the first quarter of 2001 from the fourth quarter of last year, according to the Washington-based Society of the Plastics Industry Inc.
Van Dorn Demag had imposed one-week shutdowns at its three manufacturing locations in January, April and May. The plants also were shut the week of July 2. Spreat said the company does not plan any more one-week closings.
``By going through this [layoff] process, we will eliminate the shutdowns and furloughs. So we are not going to be shutting down a week at a time, or having the furlough process anymore,'' he said.