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October, 1999

Pilkington - LOF Closes Autoglass Division Plant

Lathrop California to lose 150 jobs


     Citing low plant production volume and high salaries, Pilkington Libbey-Owens-Ford announced Tuesday it will close the automotive glass division of its plant in Lathrop, California. About 150 of the auto glass division's 175 workers will lose their jobs, although no date has been announced, company spokesman Phillip Webb said. The employees were notified Tuesday.

     The remaining 25 employees are likely to be absorbed into the Lathrop plant's float glass division, which employs 186 workers. Float glass products include windows used in residential and commercial building.

The automotive division has been producing windshields and side windows for New United Motor Manufacturing Inc., a joint venture of Toyota and General Motors in Fremont, California. NUMMI makes Toyota Corollas along with Chevrolet models formerly marketed as Geos.

Details including how the layoffs will occur, severance pay and possible retraining opportunities have not been determined, Webb said. Webb said a lengthy study determined that the Toledo, Ohio-based company's other auto glass plants, in the Midwest and Canada, produced at higher volumes at lower salaries and thus are more profitable.

"Pilkington has looked at a wide range of options," Webb said. "This was not a decision that was made lightly."

Norm Markert, a Pilkington vice president who oversees the automotive glass division, said the company will work closely with United Steel Workers of America Union Local 418, which represents the Lathrop workers. Marvin Weyers, the local's president, spent the day in the plant briefing workers and could not be reached for comment.

Pilkington Libbey-Owens-Ford registered $1 billion in sales in fiscal 1999, Webb said. The company is owned jointly by United Kingdom-based Pilkington and Japan-based Nippon Sheet Glass. Pilkington purchased the Lathrop plant in 1986.

Source: Jeff Jardine of the Modesto Bee