Southwire phasing out Kingman operations

Wednesday, Mar 31, 2010

The Southwire production plant in the Kingman Airport Industrial Park will close by the end of the year, putting dozens of local employees out of work, according to a company spokesman.

The plant's 70-plus employees were notified of the pending closure around 2 p.m. Monday, according to communications director Gary Leftwich. Kingman's is one of two plants in the Carrollton, Ga.-based company's electrical division slated to close, due to restructuring caused by the poor housing market, he said.

"With construction starts remaining at historic lows, we're restructuring our business and operations to match current market trends and trends predicted over the next four or five years," Leftwich said. "Southwire remains strong, we're financially strong, competitive in the market and profitable, and we want to do everything to make sure we stay competitive."

Leftwich said the closure is likely to take place in steps, with layoffs to be conducted in phases as the facility draws down its operations. The plant, located at 4900 Industrial Blvd., produces electrical cable and wires used for new residential and commercial construction.

"They make wire and cable that is used inside the walls of homes, offices, stores and other buildings," Leftwich said. "But as construction starts have just suffered and bottomed out, our business has fallen.

"A decision like this is never, ever easy," he added.

While the plant will be completely closed by the end of the year, Leftwich said it remains uncertain when exactly the doors will finally shut. He added that while certain selective equipment will be removed from the plant for use in other Southwire facilities, much of the equipment will remain on-site for future use. Leftwich did not specify whether or not Southwire would maintain ownership of the facility in hopes of eventually reopening it, or whether it would consider selling it off, though he did state "we are fully confident we will emerge from this economic recession stronger than ever."

Airport Authority Director of Economic Development Bob Riley had no comment on the situation, having not yet received verification from Southwire by the time he was contacted. Mayor John Salem, however, said he was very disappointed at the pullout, adding that the closure would put many people out of work at the worst possible time.

"They make all kinds of cable and wire for everything from battleships to buildings. They do it all out there," Salem said. "For them to close up, that would really hurt us."

Source: Daily Miner