Sikeston business to close its doors

Employees at Superior Essex in Sikeston found out Tuesday that nearly a third are losing their jobs (Photo by Tim Jaynes, Staff)

SIKESTON - The employees of a Sikeston industry received bad news Tuesday: Nearly a third are losing their jobs. The remaining workers will see cuts continue until August, when production could end.

Officials with Superior Essex plant, located 1620 Malone Ave., informed the 28 salaried and 183 hourly employees Tuesday that "due to economic conditions, primarily low product demand and competitive pricing, we are forced to curtail production capacity," said Melanie Hall, vice president of corporate communications for Superior Essex's corporate office in Fort Wayne, Ind.

"We are going to ramp down production over the next four months," she added.

Superior TeleCom Inc. is one of the largest North American wire and cable manufacturers and among the largest wire and cable manufacturers in the world, according to information on the company's Web site. The company purchased the Sikeston plant from Triangle Wire in 1996.

Hall said the production cutbacks will mean about 50 to 60 of those currently employed will lose their jobs immediately. The plant will continue to phase down, running through August when plant production will be "curtailed."

Hall insisted the plant will not be sold, adding "depending on any improvement in market conditions it could resume production in the future."

The Sikeston plant is one of three similar plants operated as Essex with other facilities at Florence, Ala., and Anaheim, Calif. The company official said the cuts at the Sikeston plant are the only changes being announced within Essex Electric.

"We certainly regret the effect the reduction will have on the employees and their families," Hall said. She added the local employees would be considered for other jobs in the company if they become open at other plants.

Local Essex officials were not available for comment Tuesday afternoon.

Bill Green, director of the Sikeston Department of Economic Development, said the company's closing will be felt throughout the area. "The impact will have a ripple effect - it will be felt economically, in the school district, through the entire community," he said.

Green said his department is expecting a formal letter of closure from the company within the next several days. With that notification in hand, he will contact the State Department of Economic Development to make certain all available resources, including job training, assistance to dislocated workers and other programs, are available.

"Our challenge will be trying to identify jobs for the people who are immediately displaced and those displaced over next several months," said Green. "The loss of any business has a negative connotation for the community and particularly one that employs such a large number of people."

Noting the plant has a long history in the community, Green praised the local employees and their role in Southeast Missouri. He said he believed it important for these individuals to know that "we continue to value them as friends and neighbors and members of this community. We will do anything and everything we can to ensure they continue to live in Sikeston and be a part of this community," Green added.

"Unfortunately the resources we can utilize to soften the blow they received today are limited. Still we will make it our priority to make it possible for them to continue to stay here."

Green said he was aware that Superior Essex had contacted a national real estate firm about doing an analysis of the building to determine its marketability.

Earlier this month, Superior Telecom announced the filing of a petition to seek reorganization under Chapter 11 of the United State Bankruptcy Code. Also the company announced its had obtained $100 million in "Debtor in Possession" financing facility from lenders.

"The company's decision to implement a major restructuring and deleveraging of its balance sheet was made in consultation with its principal secured lenders and follows a series of credit agreement amendments obtained by the Company which have allowed the Company to improve its competitiveness and strengthen its market leadership in its key business segments," said Steve S. Elbaum, chairman, in an announcement of the debt reduction plans.

In the news release, officials stated that as part of its restructuring the company would institute a series of initiatives to streamline manufacturing, reduce the costs of operations and balance production capabilities with demand.