Friday, January 19, 2001
Friday, January 19, 2001 |
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TDK to cease VCR, CD-R production; job loss will be partially offset by expansion of sister company
By JOHN
MUNFORD
TDK Electronic Corporation (TEC) has announced it will close its manufacturing operations at its Peachtree City plant, which currently produces VHS videotapes and recordable CDs. The shutdown is part of a restructuring for TEC, which will eventually result in the loss of approximately 180 jobs, according to information released by the company Thursday morning. CD-R production will end on or before March 31 while VHS production will end on or before April 30, the news release stated. Once the shutdown is complete, approximately 100 packaging and distribution jobs will remain in TEC's Peachtree City plant, the company indicated. But almost 100 terminated TEC employees may be hired at TEC's sister company in Peachtree City TDK Components USA (TCU) which has 97 openings almost immediately, said TDK Human Resources Manager Henry Deveikis. TEC just celebrated its 20th anniversary of producing VHS tapes in Peachtree City in December, Deveikis said. The CD-R production began approximately three years ago, he added. TEC Plant Manager Joji Sagasaki said the decision to eliminate nearly two-thirds of the local workforce was a difficult one, although the company has done business here for over 20 years. He cited "marketplace reality" as part of the decision, while the company indicated the reason was due to "changing marketplace conditions, industrial shifts and competitive outlook for these products. "TDK's VHS and CD-R products will continue to be produced by TEC's non-U.S. affiliates," according to a news release issued by the company. "We hope to be able to transfer many of our affected employees into available positions within the company or its sister company TCU," Sagasaki said. "We are confident, however, that the balance of our employees have the training and work experience that will make them valuable assets to any company, and we are committed to doing everything we can to ease their transition to new employment." The company will conduct job fairs at the plant and invite a variety of potential employers to the plant in attempts to help employees find new jobs, Sagasaki said. The company will also hold employee workshops on resume preparation and successful job interviewing skills. John Alexander of the Georgia Department of Labor said that agency would also assist in finding employment for the affected TEC employees. A separation package will be offered to affected employees, including continued medical benefits for a specified period of time, Sagasaki said. The job opportunities with TCU will be available later this year as it plans to add about 80 new manufacturing jobs, Sagasaki said. Those jobs will involve the production of NL coils, which are used in cellular phones and other electronic devices. Once NL coil production is fully operational, TCU will have approximately 380 jobs at its Peachtree City facility. Also, there are another 17 open positions at TCU which TDK officials hope to fill with employees from TEC, said Deveikis. Interviews have already begun for those jobs and hopefully those transitions will occur almost immediately, he added. "We're trying to minimize the impact as much as possible," Deveikis said. The city has received notice of the impending shutdown, said information specialist Betsy Tyler. The employees being eliminated were notified earlier in the week, Deveikis said.
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