6/7/07

Closure
Southwoods-Arauco moulding company to close
By Cathy Gilbert

CATHY GILBERT/Manning Times

The 106 workers at the Southwood-Arauco Millwork and Lumber Commpany were informed last week that the plant would close by June 30. The company makes moulding for the home construction industry which has been in a slump recently.

Citing a slowed housing market and reduced demand for its product, Diego de la Maza, general manager for the Chilean-owned Southwoods-Arauco Lumber and Millwork company announced last week the firm’s intention to shut down its Manning production facility.

“As you are aware, the current housing market situation has been extremely tough for Southwoods-Arauco as well as many others moulding producers in the U.S. and offshore,” de la Maza wrote in an undated letter addressed to customers, suppliers and friends.

“During these last months we have been seeking more profitable alternatives for our company. Unfortunately, we haven’t been able to reach the sales volumes and returns we need to keep running this operation. Therefore, we have finally decided the closing down of Southwoods-Arauco as of June 30, 2007,” the letter continued.

According to Clarendon County Economic Development Director John Truluck, the move came as a surprise to his office.

“Had we known the company was considering shutting down, we could have assisted them with finding a buyer … that’s what we do,” Truluck said Friday.

Truluck said de la Maza had indicated that sales were off by as much as 50 percent. The company currently employs 106 workers in their Manning facility.

“If there is a bright side to this event, it is that Grant Clarendon has indicated that they intend to begin hiring in earnest this summer,” Truluck said.

Truluck also said that the S.C. Dept. of Commerce’s “One Stop” workforce system had already been notified of the plant closure and that a “Rapid Response” team could be mobilized as early as next week.

The Rapid Response Team, and its State Dislocated Worker Unit (DWU) are responsible for providing assistance to employers and employees impacted by any permanent layoff or closure action affecting 50 or more workers. Rapid Response services are provided regardless of the reason for layoff or closure.

Rapid Response is an information sharing service for employees, as well as employers. It facilitates access to South Carolina’s public workforce system and services designed to assist workers in finding new employment. Rapid Response is a collaborative effort involving several workforce partners, such as the Dept. of Commerce, the Workforce Investment Act Program and the state unemployment insurance office.

The Team stands ready to assist both employers and employees as they transition through a downsizing or closure event and can coordinate federal, state and local officials to help workers return to work as quickly as possible.

“We have contacted management at Southwoods- Arauco and offered our DWU service to them,” said Kara Borie, spokesperson for the Dept. of Commerce. “We hope to hear from them very soon and be ‘on the ground’ with their employees as soon as possible.”

Borie explained that the employer must approve the participation of the Rapid Response team before they can enter a workplace.

De la Maza’s letter said that he anticipated closing the facility permanently by June 30.

Workers at Southwoods- Arauco were granted 60-days pay as severance from the firm, according to Truluck.