By Marilyn Odendahl, Truth Staff
modendahl@etruth.com
NEW PARIS -- Month after month since 2007, Flexsteel Industries has watched its business from recreational vehicle manufacturers steadily decline until finally the company announced Wednesday it was closing the plant on C.R. 23 and displacing about 130 workers.
"It was our feeling that it appears unlikely manufacturing will ever recover to require the capacity in all our facilities," said Justin Mills, Flexsteel spokesman.
In the unincorporated town in the southern part of Elkhart County, the news left some wondering what would happen next. New Paris has seen business leave the area and is used to plant closings, having watched the former Burger Dairy factory shut down in 2003.
Even before Flexsteel told its workers of the closure, there were indications that something was happening with the facility.
Pro Hardware and Farm Store on Main Street had not gotten an order from the manufacturer since the company ordered a door knob in July. Also, last week the company had asked New Paris Telephone to disconnect some of its lines.
"Anytime you have 130 jobs that you lose, it's definitely going to have an impact," said Paul Penrose, chief financial officer at New Paris Telephone. He added the community would have to wait and see how big the impact would be.
Flexsteel plans to stop operations at the New Paris plant by Nov. 9 and transfer production to company headquarters in Dubuque, Iowa. The company then intends to sell the 170,000-square-foot building and thus end its 26-year presence in Elkhart County.
The Indiana facility makes a variety of seats, including drivers' seats, sofas, accent chairs, primarily for motorhomes and travel trailers while the plant in Iowa also makes seats for RVs as well as boats. Space is available in Hawkeye State plant to add the New Paris product line and continue to serve the manufacturing clients, Mills said.
"We are still a major player in the RV industry," he said. "We're not going anywhere. The company has to adjust to business conditions."
Some administrative personnel from the New Paris plant will remain with Flexsteel, Mills said, and the other employees will be able to apply for jobs at other Flexsteel plants although the company is not hiring now.
In addition to the New Paris closure, Flexsteel also will be stopping manufacturing at its residential furniture making plant in Lancaster, Pa., impacting about 135 workers. The warehouse and distribution operations will remain.
The company expects the consolidations to cost between $2 million to $2.5 million but eventually result in an annual pre-tax savings of up to $4 million.