Asian cos irk US bike firm
The top US bike maker said that fierce Asian competition was forcing it to shut down its biggest domestic plant to scrap excess capacity that is driving prices and profit margins sharply down. Dayton-based Huffy Corp. said it would close its 40-year-old, 78,965 square-meter (850,000 square-foot) manufacturing facility in Celina, Ohio as part of a major restructuring to boost efficiency by eliminating excess production capacity and cutting annual bicycle operating expenses."We regret the impact that the decision to close the facility will have on our Celine employees, their families and the community," said Chris Snyder, President of Huffy Bicycle Company. He said the Celina operation would be phased out over a 12-month period and that the company will work with community leaders to lure alternative employers to the Celina facility.Huffy said it would also significantly boost finished goods production at its plant in Farmington, Missouri.
The restructuring grew out ofHuffy's analysis of the world bike market over the past 18 months showing that comparable retail bike prices in the UnitedStates have plunged 25 percent over the past four years.
Harrods head seeks Thai oil sops
Egyptian billionaire Mohammed al-Fayed, the owner of London's famous Harrods store, is seeking an oil exploration concession in Thailand, reports said. Director-general of the Mineral Resources Department Nopadon Mantajit said al-Fayed's Harrods Natural Resources Inc. wanted to invest in the exploration of an offshore block in the Gulf of Thailand, the Bangkok Post reported. The application came as a result of al-Fayed's visit to Thailand earlier this year, when he had talks with Prime Minister Chuan Leekpai, the report said.
Union unrest at General Motors
Unionised workers at a General Motors plant in Flint, Michigan have issued a strike deadline that could shut down most of the Automaker's full-size truck production within days, a United Auto Workers (UAW) official saidFriday.
The notice was given to GM in the form of a five-day intent to strike letter that expires June 4, said Ruben Berks, a UAW regional director for the Flint area. The strike deadline affects about 3,400 UAW Local 659 members who work at GM's sheet metal plant, in Flint, 85 kilometers (50 miles) northeast of here. Berks said the deadline was given because six months of negotiations with GM have failed to resolve issues of subcontracting, production speed-ups and violations of the local contract.
About 88 percent of workers approved a strike vote in March. If an agreement is not reached and workers go out some time Thursday, it eventually could affect as many as 17 GM plants, he added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
