UPDATE: Flexsteel to close New Paris plant

By JIM MEENAN, Tribune Staff Writer

Tools

By Beth Boehne

Story Created: Sep 10, 2008 at 10:48 AM EST

Story Updated: Sep 15, 2008 at 10:44 PM EST

NEW PARIS — The long list of RV workers losing their jobs in Elkhart County just got a little longer.

Approximately 130 workers will lose their jobs Nov. 9 at Flexsteel in New Paris, the Dubuque, Iowa-based company announced Wednesday.

The company also announced it would close a plant in Lancaster, Pa.

“The RV industry has been hard hit by the slowdown in the economy,” said Justin Mills, a spokesman for Flexsteel. “It’s been especially tough on the motor home and travel trailer, which are the primary products made there.”

The New Paris plant essentially makes anything to do with recreational vehicle seating from captain’s chairs and recliners to sofas and beds, even seating for boats for Flexsteel’s marine division, Mills said.

“It now appears that manufacturing will not recover sufficiently,” enough to keep both its Dubuque facility and New Paris plant open, Mills said.

Flexsteel has been manufacturing at the New Paris site since 1982, while the company itself has been around for 115 years.

Mills said the plant will likely be put up for sale.

“It’s really due to the slowdown in the economy and that there is just not enough volume for all the Flexsteel plants,” he said. “And Dubuque has more abilities through its equipment to produce all the products through that sector of the business.”

Kyle Hannon, vice president of public policy for the Greater Elkhart Chamber of Commerce said it is an example of what many feared when the larger layoffs were announced by RV manufacturers earlier this year.

“The thing everyone has been wondering about is what will happen to the suppliers, as that’s another big source of commerce and jobs,” he said. “This is another example of a supplier that is suffering because of the softening of the RV industry.”

Hannon said that the fact that the company is based in Dubuque likely helped that plant survive.

“It goes to show the benefit of having the headquarters in their community, so when the company pulls back home, it happens to be in your backyard,” he said.

Staff writer Jim Meenan:
jmeenan@sbtinfo.com
(574) 235-6342

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