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Timken Announces Closing of Canton Bearing Operations
CANTON, Ohio -- The Timken Co. announced this morning it will close its Canton bearing manufacturing operations, affecting 1,300 employees. Spokesman Jason Saragian said Timken's steel operations are not affected and the decision will have no impact on a steel distribution and processing plant the company operates in Vienna, "This is strictly bearings-related. The real issue is competitiveness," he said. Timken operates three bearing plants in Canton.The plants were having difficulty winning business when compared to the company's other bearing manufacturing operations worldwide and in the United States, Saragian said. Also, the company and officials representing the United Steelworkers of America were unable to reach an agreement that Timken officials say would have allowed the company to be more competitive in the global market."We have been meeting with the union for more than eight months to discuss how to make our bearing operations competitive," said James W. Griffith, president and chief executive officer. "We are disappointed that our talks with the union did not lead to the changes necessary to make these facilities viable. Therefore, we will begin moving the products to plants where they can be manufactured competitively."In September 2003, the company said, it began a series of meetings with the union and associates in the Canton bearing operations to discuss a new collective bargaining agreement intended to make the plant more competitive. At that time, the company made it clear that the Canton bearing operations could not continue to operate in their current form.According to Timken, the company indicated it was willing to make the investments necessary to create a focused, competitive operation in the Canton bearing plants if these investments were accompanied by contract modifications. Since then, the company and the union have been unable to agree on the necessary changes.The company declined to give specifics on negotiations or any proposed contract modifications."We continue to take a close look at our manufacturing network to create focused factories that are globally competitive and better serve our customers," Griffith said. The company expects to shift about 80% of Canton's production to its other U.S. plants. Timken employs 4,800 in Stark County, Ohio and approximately 26,000 worldwide.Company officials are scheduled to meet with union members regarding the decision. More specific information such as when the plants will close, the impact on employment and the degree of savings and charges for restructuring and moving the operations will be made available after these discussions, the company reported.Production at the Canton bearing plants has declined 27 percent over the last five years and the structure of the operations made winning new business difficult, company officials said. The plan to close the Canton bearing operations is consistent with Timken's overall strategy to make the company more profitable and consumer-centric, they said.The Timken Company is a leading global manufacturer of highly engineered bearings and alloy steels and a provider of related products and services with operations in 27 countries. A Fortune 500 company, Timken recorded 2003 sales of $3.8 billion and employed approximately 26,000 at year end.Web site: http://www.timken.com"