Tyco International Ltd. will consolidate three of its plastic-hanger facilities, shutting two plants and moving those operations to a third facility.
The moves, designed to reduce excess capacity, affect Tyco's Secaucus, N.J.-based A&E Products Group, a dominant North American manufacturer of the injection molded garment hangers, said Jay Pomeroy, vice president of communications.
The company refurbishes used hangers collected from retailers, adding such items as new hooks and size tags and then boxing the hangers before shipping them back to department stores and other clothing outlets, Pomeroy said.
Tyco, based in Pembroke, Bermuda, but operated out of Princeton, N.J., will close reuse-hanger sites in Lawrenceville, Ga., and Jersey City, N.J., Pomeroy said. Both plants are to be closed in phases by May 30, he said. The Lawrenceville plant, near Atlanta, employs 88, and the Jersey City facility has 92 employees.
Production from those plants gradually will shift to a site in Forest City, N.C., he said. The plant has the capacity to accept the added work, and no expansion is planned, Pomeroy said.
All the sites refurbish hangers and none of them perform injection molding, he said.
``It's all part of what we are doing in plastics and adhesives through rationalization and consolidation, taking a lot of cost out overall,'' Pomeroy said. In mid-December, the company announced the closing of four film extrusion plants and is considering shutting several other facilities.
A&E recorded an estimated $275 million in North American sales in 2002, ranking No. 24 on Plastics News' list of top injection molders.