Yorktowne Cabinetry in Ringgold has said it will not be closing the plant nor will workers be laid off at this time, as some local media outlets have reported.
Steve Ostasiewski, human resources manager at Yorktowne, denied the reports of layoffs and the plant closure when contacted Thursday.
The company also issued the following news release Thursday morning:
“On Tuesday, October 28, 2008, in accordance with the Worker Adjustment and Retraining Notification Act, 29 U.S.C.§2101 et seq. (“WARN Act”) Yorktowne Inc. provided letters informing its employees that there may be a need to reduce the number of employees currently working at the facility located at 2000 Cane Creek Parkway, Ringgold, VA 24586.
“Reductions at the Cane Creek facility may be necessary due to the continued decline in the home building industry. The duration of these reductions is uncertain at this time but may exceed six months. As the numbers of new home starts has drastically reduced this has negatively affected our business. We are not sure of how many employees could be impacted or the length of the time they would be off work, but we wanted to give notice in case we needed to reduce the size of the workforce. This is not a plant closure announcement, merely an adjustment based on the business conditions that we currently face.
“Yorktowne remains committed to the Cane Creek facility and its dedicated workforce.”
Yorktowne currently employs 165 active employees, according to Ostasiewski.
Yorktowne Cabinetry opened a new 256,000-square-foot manufacturing plant in Ringgold in 2006 with the capability of producing 1,600 cabinets a day.
The company invested $19 million into the facility with plans to hire 300 employees within its first year of operation.
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