Erie Plastics Corp. is reorganizing its workforce, laying off 192 people after losing several major consumer product contracts.
The Corry, Pa.-based injection molder had 360 workers before the layoffs began.
Hoop Roche, chairman and chief executive officer, said in a telephone interview that the layoffs started in January and will be completed by July. He said the company was more than halfway through the planned cuts.
A report in Pennsylvania's Meadville Tribune quoted an unidentified Erie Plastics worker who said Procter & Gamble Co., a major customer, had pulled a product line from the molder about a month ago.
Roche would not identify the customer that was triggering the layoffs, citing a confidentiality agreement. He said changes at Erie were made in response to the completion and discontinuation of several major consumer product contracts. He added the firm is working to replace lost business.
``We are working on some proprietary products and we hope to be in production sometime this year,'' Roche said.
He said some of the layoffs were unanticipated, but that the firm expects to weather the storm.
``Erie Plastics has appropriately planned reductions in staff to maintain efficient and right-sized operations and ensure production continuity,'' the company said in a prepared statement.
The company said that the lost business will constitute about half of Erie Plastics' annual sales.
The Meadville Tribune said Erie was looking for a buyer last year, but no deal materialized.
Erie Plastics designs and injection molds rigid, thin-wall plastic packaging for a range of industries.