Fleetwood to close Paxinos, PA plant

[Route 66]

Fleetwood Press Release


RIVERSIDE, Calif., Oct. 10 /PRNewswire-FirstCall/ -- Fleetwood Enterprises, Inc. (NYSE: FLE) announced today that it is relocating motor home production from its plant in Paxinos, Pa., to its plants in Decatur, Ind. The Paxinos manufacturing facility, which builds Class A gas and Class C products, will cease operations effective early December 2008. The full line of products currently built in Paxinos will be transferred to the Decatur manufacturing complex, which currently builds Class A diesel products, during the fiscal third quarter. Fleetwood's other Class A gas and Class C facility in Riverside, Calif., will not be affected by this consolidation.

"This is a difficult but necessary operational change," said Paul Eskritt, president of Fleetwood's RV Group. "We are now in the fourth year of a declining motor home market and current forecasts indicate further declines into 2009. We firmly believe that the market will rebound, and we have enough excess capacity in Decatur to handle this consolidation as well as a healthy increase in market demand. Our Decatur personnel have experience building both Class A and Class C motor homes, so we expect the transition to be smooth. In addition to greater capacity utilization, other advantages of the relocation include the closer proximity of our Indiana plants to most of our primary suppliers, as well as a larger portion of our dealer network in the East."

This consolidation will not affect the availability of Fleetwood motor homes to dealers or consumers in the marketplace. All current brands and models will continue to be offered. Fleetwood remains committed to providing the best quality, highest value products to all its customers.

The Company expects to recognize costs related to the consolidation of approximately $2.2 million in its fiscal second quarter, with an additional $2.0 million in its fiscal third quarter. Any potential impairment charges on the Paxinos plant are being evaluated. Ongoing savings are estimated to approach $1.5 million per quarter beginning with the fiscal fourth quarter. Cash generated by a permanent reduction to working capital by the end of the fiscal third quarter is expected to more than offset the costs of the consolidation.

"We are naturally concerned about the impact this action has on our associates, many of whom have long-term service with Fleetwood," Eskritt said. "This decision in no way reflects on our excellent workforce or the Paxinos community. The difficult decision to close the plant is strictly market-related. Our associates were notified today of the consolidation, and they will be entitled to pay and benefits for at least 60 days. In addition, career assistance will be provided to all those affected."

The Paxinos plant, which opened in 1973, currently employs approximately 325 people.

[Route 66]

Fleetwood Press Release


RIVERSIDE, Calif., Oct. 10 /PRNewswire-FirstCall/ -- Fleetwood Enterprises, Inc. (NYSE: FLE) announced today that it is relocating motor home production from its plant in Paxinos, Pa., to its plants in Decatur, Ind. The Paxinos manufacturing facility, which builds Class A gas and Class C products, will cease operations effective early December 2008. The full line of products currently built in Paxinos will be transferred to the Decatur manufacturing complex, which currently builds Class A diesel products, during the fiscal third quarter. Fleetwood's other Class A gas and Class C facility in Riverside, Calif., will not be affected by this consolidation.

"This is a difficult but necessary operational change," said Paul Eskritt, president of Fleetwood's RV Group. "We are now in the fourth year of a declining motor home market and current forecasts indicate further declines into 2009. We firmly believe that the market will rebound, and we have enough excess capacity in Decatur to handle this consolidation as well as a healthy increase in market demand. Our Decatur personnel have experience building both Class A and Class C motor homes, so we expect the transition to be smooth. In addition to greater capacity utilization, other advantages of the relocation include the closer proximity of our Indiana plants to most of our primary suppliers, as well as a larger portion of our dealer network in the East."

This consolidation will not affect the availability of Fleetwood motor homes to dealers or consumers in the marketplace. All current brands and models will continue to be offered. Fleetwood remains committed to providing the best quality, highest value products to all its customers.

The Company expects to recognize costs related to the consolidation of approximately $2.2 million in its fiscal second quarter, with an additional $2.0 million in its fiscal third quarter. Any potential impairment charges on the Paxinos plant are being evaluated. Ongoing savings are estimated to approach $1.5 million per quarter beginning with the fiscal fourth quarter. Cash generated by a permanent reduction to working capital by the end of the fiscal third quarter is expected to more than offset the costs of the consolidation.

"We are naturally concerned about the impact this action has on our associates, many of whom have long-term service with Fleetwood," Eskritt said. "This decision in no way reflects on our excellent workforce or the Paxinos community. The difficult decision to close the plant is strictly market-related. Our associates were notified today of the consolidation, and they will be entitled to pay and benefits for at least 60 days. In addition, career assistance will be provided to all those affected."

The Paxinos plant, which opened in 1973, currently employs approximately 325 people.

[Park]

I think we will be seeing a lot of this in the economic down turn not just RV manufactures. More companies will look to consolidate divisions and regions in this new economy.

[lthrnk]

We passed that plant on a side trip, about two months ago. Not a whole lot of other stuff happening in that area. Gonna put a lot of people out of work, with very little else in the area as far as job pportunities.

[Ron and Patti]

Hundreds of workers will lose their jobs at a central Pennsylvania plant right before the holidays.

Some 325 workers at the Fleetwood Enterprises RV plant near Paxinos were told Friday morning they would lose their jobs in early December when the plant closes.



Fleetwood announced it would relocate its motor home production to Indiana.

Company officials said employees at the plant have not been working full shifts for some time now.

This move, officials said, will save the company millions of dollars.

When asked why the job cuts will be made just before the holidays, a company representative responded, "When is a good time to tell folks they're losing their jobs?"


The Fleetwood Motor Home plant near Paxinos is where men and women built countless recreational vehicles since the 1970's.

Tim Showver and Nick Fisher are two of those employees still reeling from the announcement Fleetwood is packing up and closing down their plant.

"It was just a bomb. We thought we were going to get some downtime, because times are tough, but they told us we're done," said Showver. He has spent the last 16 years working for Fleetwood.

Showver planned on retiring from the plant. With a wife and two kids to support, he is not sure what the future holds.

"I have no clue what to do, imagine I'll be on unemployment for a while," he added.

"To some it doesn't sound like a lot. But to us, you give 110 percent and want to do good. You want to feel like you are accomplishing something. After this, it's a slap in the face," said Fisher.

Motor home sales keep dropping and it looks like more of the same next year, said a Fleetwood spokesperson.

Showver and Fisher have no words for how the greater economic troubles are affecting them, and their livelihoods.

"You never think it's going to hit you, then it really does," said Showver.

Employees are expected to get back to work at the plant on Monday.

The move by Fleetwood will save the company millions of dollars, according to a press release.

Amy Zalar runs a lunch truck for plant workers near Paxinos.

On Friday, the employee parking lot at Fleetwood Motor Homes is empty. Workers were told the plant is closing, and they could go home early.

"When I see the parking lot like this, I get a knot in my stomach. Because I know not only what it's doing to them, but it also affects me in long run too," said Zalar.

More than 300 workers at the plant make up Zalar's customer base. In June, a little more than 100 workers were laid off. Back then, it was blamed on rising fuel prices and a shaky economy.

Zalar thinks it is a sign of things to come.

"I've got to known these guys over the past year and stuff and really feel for them. This is a hard hit not only for them, but for the economy in general," she said.

"It's going to be a major, major blow, especially to this region, the coal region. And a major blow to these families," said Kurt Masser, one of the Northumberland County Commissioners.

Commissioners came by the plant promising to do everything they can to make it an easy transition for folks, facing a tough time ahead.

"I got a call this morning at 6 o'clock and somebody was crying, I feel bad for her. It's a sad, sad day," said Commissioner Vinny Clausi.

"The people who are working are hard working Pennsylvanians, they didn't have a nickel in this crisis and now, here it is," added Commissioner Frank Sawicki.

This was a report from the local news. We have freinds that work at the PA plant

[NLOVNIT]

Sorry to hear of that plant closing. Our Bounder came out of that facility - a quality product made by those folks there.

Lori-