The company blames the nationwide credit crunch and delays in wind projects. A press release says the company is preparing for "weaker growth in the short term."
After the cuts, the company says it will still employ more than 350 workers in Arkansas and more than 1,300 in North America.
The Scott Hamilton location will be closed, with about 60 of those jobs added to its other site at the Port of Little Rock.
THV's Mike Duncan will have more on this developing story on Today's THV and todaysthv.com.
Company News Release:
LM Glasfiber, the world¹s leading manufacturer of blades for wind turbines, is adjusting its capacity in Little Rock as a result of the credit crunch now causing delays in wind projects due to more difficult financing conditions.
During 2008, the company has expanded rapidly in Little Rock but is now preparing for weaker growth in the short term, and is taking needed steps to assure a strong future for LM Glasfiber in Arkansas.
"We remain strongly committed to our North American operations, including our new regional headquarters in Little Rock," said Randy Fox, Vice President General Manager, North America for LM Glasfiber. "The toughest thing is the immediate impact on some of our employees, who have been instrumental with the launching of Little Rock's operations. These are steps we truly wish we didn¹t have to take."
The Scott Hamilton facility will be idled, with approximately 60 of its jobs added to the Port Site to support a planned transition to a 24/7 operation. The total number of reductions in Little Rock is estimated to be over 150, with the company still employing over 350 in Arkansas and more than 1,300 in North America. The transition will begin in approximately 60 days, Fox said.
Fox noted that the company's North American operations grew significantly in 2008. As a result of that growth, the Scott Hamilton facility, which was originally intended to be a training center, was brought online as a production plant to meet growing customer demand. But, due to the credit crunch the company now predicts lower growth rates in the short term. The reduction for volume out of the Arkansas operations does not support the need to maintain Scott Hamilton as a production facility. "The credit crunch is now causing project delays in developer's wind projects due to more difficult financing conditions. As a natural result we must take necessary steps to keep the company on the road to a solid, sustainable future," said Fox. "The long-term outlook for wind is strong and the U.S. is still the world¹s number-one wind energy market. We're confident that the long term demand will rebound, and the difficult decisions being made today will help put us in the best position to ramp back up when it does."
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