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Ansonia Copper & Brass to lay off up to 90 workers
[May 23, 2008]

Ansonia Copper & Brass to lay off up to 90 workers


(Waterbury Republican-American (CT) (KRT) Via Acquire Media NewsEdge) May 21--For the third time in less than three years, Ansonia Copper & Brass Inc. will severely cut the work force at its manufacturing facility in Ansonia, citing rising energy costs and foreign competition. Up to 90 hourly and salaried workers will be laid off in the next 60 days, company president Raymond L. McGee said Tuesday. The plant employs 102 workers -- 68 hourly and 34 salaried -- who were notified of the planned layoffs this week, McGee said.



The company's Liberty Street complex manufactures brass and copper-alloy rods and wire for the automotive, home appliance, shipbuilding and electronics industries.

"We think that we're now at a point where we can't sustain the business," McGee said. "That's why there are going to be some very significant cuts, unfortunately."


He stressed that the company's manufacturing site on Bank Street in Waterbury, where it employs about 60 people producing large-diameter specialty tubing, will not be affected.

McGee said the company is "not in a position" to offer buyout packages to the workers. "We will assist all of our employees affected by these changes with obtaining the maximum benefits available from both state and federal sources," he said.

When the layoffs will begin has not been determined, McGee said, because he has offered customers a chance to place one last order, which could extend employment for some workers until production is completed. Once the layoffs are completed, the Ansonia facility will be reduced to producing just one wire alloy, he said.

Tuesday's announcement is the company's third major layoff in Ansonia in 30 months. Ansonia Copper & Brass had more than 300 workers in Ansonia when McGee and his partner, Charles E. Pompea, purchased the company in 2002 and averted a bankruptcy filing.

By the time the layoffs are completed, the company could have as few as a dozen workers left in Ansonia.

McGee blames the downsizing on the "dramatic increases in our costs of manufacturing." Since 2002, he said, electricity costs have risen 239 percent, natural gas costs have risen 200 percent, and fuel oil costs have risen 125 percent.

In addition, "the cost of our two primary materials -- copper and nickel -- have increased 583 percent and 529 percent, respectively," raising the company's financing and production costs, he said. He also blames foreign competition, saying U.S. manufacturers are at a disadvantage because of trade barriers and protective taxes. "If this country had a fair-trade policy ... we wouldn't be going through any of this," he said.

McGee said he has not received any state or federal financial assistance in the years he has owned the business. He notified federal, state and local officials of the planned layoffs, but so far has not gotten much of a response, he said.

Sen. Joseph J. Crisco Jr., D-Woodbridge, issued a statement Tuesday saying he contacted the state Department of Economic Development and the state Business Advocate about the layoffs, and pledged to work with state and local officials "to see what can be done to provide assistance to the laid off workers and to avert the cutbacks." Ronald Angelo, deputy commissioner of the DECD, did not return a call seeking comment Tuesday.

Local 6445 of the United Steelworkers union, which represents hourly workers at the Ansonia facility, also did not return a call seeking comment.

McGee reassured his Waterbury staff that the facility has plenty of work to keep it running, including three-year contracts with Northrop Grumman Shipbuilding and Bath Iron Works, as well as continuing supply contracts with Electric Boat in Groton.

The Waterbury operation "continues to supply copper-nickel tubing to the balance of the shipbuilding and repair business," he said. "That business is very healthy and is not impacted by this decision." McGee said he will continue to explore possible alternatives to layoffs, but he was not optimistic.

"I will continue to pursue any activity that might in some way enable us to keep this operation going, but so far it has not crossed my path," he said.

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