Carolina Forge Layoffs

Auto manufacturing slump causes layoffs at Carolina Forge

Carolina Forge Co. laid off 27 people Thursday because of problems in the national car industry.

The company is a supplier to the automobile industry, which has slammed the brakes on car production in recent weeks.

"For the first nine months of the year, were on a record pace," said Bill Casella, plant manager. "We were on our way to having the best year since we bought the business in 2001."

Then, in the last two weeks, business came "to an abrupt halt," he said.

Because of the credit crunch, which has hindered car buying, auto manufacturers have cut back on their production by about a third at the moment, he said.

It now looks like manufacturers will produce about 11 million vehicles next year, down from an industry average of about 15-16 million cars made annually for the past four or five years, he said.

Carolina Forge, which is located at 2401 Stantonsburg Road, buys raw steel and makes auto parts used by all car manufacturers, besides Honda, in America, Canada, and Mexico.

The full-time workforce is now 124 people, down from 151 workers or an 18 percent reduction, Casella said. At this time, additional layoffs are not anticipated.

The layoffs affected material handlers, machine operators, tool builders, furnace operators, quality control inspectors and other positions.

No severances were handed out because the plant has the intention of calling the workers back if conditions improve, Casella said. Meanwhile, workers can file for unemployment benefits at the local Employment Security Commission/JobLink Center.

The plant also discontinued nine temporary workers a couple weeks ago and suspended its student apprentice program, which affected three student apprentices, until business improves.

The plant had hired 16 people in the last couple of months anticipating that new work would come in. However, that work has been delayed. The delay coupled with the decline in business as a result of the credit crunch "forced our hand," Casella said.

Once the work comes in, the plant may be able to bring back some workers in the first quarter of next year, he said.

"We have new work coming in, so we're in better shape than most, but when you're down, you're down."

Casella said he doesn't anticipate more layoffs.

"We're very hopeful that this will be it," he said.

The company's other forging plants in Virginia and Pennsylvania have also had layoffs.

"I think about everybody in the industry has had layoffs and curtailed production at some point," he said.

Carolina Forge Company LLC is a subsidiary of the MFC Group of Meadville, Pa.

The plant was established in Wilson in 1968 and was formerly Nucor Bearing Products until the Keller Group bought the company in 2001. MFC Group is wholly owned by the Keller Group.