AM I NEXT? NO LOVE AT BARBER STEEL FOUNDRY

Am I Next? Barber Steel Foundry to close with 61 layoffs.

Rothbury, Michigan-based Barber Steel Foundry, a division of Wilmerding, Pennsylvania-based Wabtec Corporation and a specialist in steel castings used in railroads and other industrial applications, has announced that they will be ceasing operations and permanently closing their foundry by the end of 2019. The closing will affect 61 employees. A company spokesperson noted that the decision was driven by “declining business conditions and the plant’s closure would help simplify and optimize Wabtec’s manufacturing footprint in today’s cyclical environment and better position the company for success.”

In February 2019 GE merged its Transportation Division with Wabtec in $11 billion deal and earlier this year (August 2019) started selling their Wabtec shares in Wabtec in a public offering that does not benefit Wabtec. Both GE’s locomotive and power units have had severe declines in the past year. Wabtec Corporation itself was formed by the merger of the Westinghouse Air Brake Technologies Company and MotivePower Industries Corporation in 1999.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT BAYOU STEEL

Am I Next? Bayou Steel declares bankruptcy. 376 layoffs with more to come.

LaPlace, Louisiana-based Bayou Steel Group, a mid-size steel producer, has announced the layoff of more than 376 employees as its LaPlace steelmaking facility located on the Mississippi River. The company appears to have run out of the cash needed to purchase raw materials, mainly scrap steel from abroad that is subject to tariffs, and has defaulted on payments to creditors.

According to a statement issued by the company…

“On October 1, 2019, Bayou Steel Group conducted a reduction in force, idled most of its operations, and filed for protection under chapter 11 of the Bankruptcy Code. This unfortunate situation was created by a severe lack in liquidity at the Company,
which resulted in a default with its senior secured lender, and created a situation where the Company could no longer purchase raw materials. The Company will continue to engage in limited production to finalize finished goods over the next few weeks and will use the bankruptcy process to sell off the remainder of its inventory and attempt to sell substantially all of its reaming assets via section 363 of the Bankruptcy Code to a strategic or financial buyer that will hopefully re-start operations.”

Since it is extremely difficult to idle steelmaking machinery, it is possible that a complete plant closure will result in additional layoffs.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT OWENS BROCKWAY GLASS

Am I Next? Owens Brockway Glass Layoffs — Cost Cutting

Perrysburg, Ohio-based Owens-Brockway Glass Container, manufacturer of glass containers, is continuing its three-year transformational program and has announced that the company will be idling on of their glass furnaces in their Waco, Texas plant and laying off approximately 75 employees commencing on November 7, 2019.. The decision was based on market economics with a softer demand for beer in the United States. According to a company spokesperson, “With continued softer demand in the U.S. across the beer category, O-I plans to idle one of the furnaces it uses to manufacture glass containers at its Waco facility for an indefinite duration/ This particular furnace is dedicated 100% to producing beer bottles. The remaining furnaces will continue to produce some beer as well as spirit and food glass packaging."

“As the Company remains focused on enabling its strategy to create long-term shareholder value, specific actions are underway to accelerate performance. In addition to the Company's highly successful Total Systems Cost initiative, an accelerated cost reduction initiative is being launched to help advance productivity and cost take-out across the enterprise and will be supported by a leading third party consulting organization. And, the Company continues its strategic review of its business portfolio in order to focus on core operations best aligned with the interests of the Company and its strategic customers. This review is in addition to O-I's current tactical divestiture program and is supported through the Company's ongoing engagement with Goldman Sachs.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?