Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, August 31, 1993 TAG: 9308310228
SECTION: CURRENT PAGE: NRV1 EDITION: NEW RIVER VALLEY
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: RADFORD LENGTH: Medium
The Atlanta-based company will close its Lower Basin factory in Lynchburg that employs 660 workers by the end of the year.
The company will continue to operate its Archer Creek facility that has 684 employees in Lynchburg, as well as its two plants on First Street in Radford.
Company spokeswoman Jan Toennisson said several factors led to the closing of the Lower Basin factory.
It is Intermet's oldest factory, she said, and would have needed $7 million in improvements over the next few years to meet environmental regulations.
The Lower Basin plant, which makes iron automotive castings including crank shafts and exhaust manifolds, is located in the James River flood plain and has been inundated several times in the past.
"This was a very tough decision for us," said Al Bodnar, president of Intermet Foundries. "We made every effort and explored every avenue to make this foundry a viable operation."
Intermet's two installations in Radford are a Lynchburg Foundry plant with about 275 workers and New River Castings Co. which employs about 175.
Toennisson said the Lynchburg closing is expected to have a minimal impact in Radford.
She said the equipment in the Radford plants is newer than that in the Lower Basin facility.
Intermet is in the final stages of completing a $20 million expansion of New River Castings that is expected to add 75 jobs and double the plants capacity.
The Lynchburg Foundry plant in Radford, however, laid off 105 workers in December 1991.
Toennisson said Intermet will meet with Steelworkers Union officials to discuss alternatives for workers losing jobs from the plant closing.
by CNB