GTP to eliminate 150 positions
Global Tungsten & Powder Corp.'s plant in Towanda, which employs 950, will lose 150 positions. Daily Review File Photo
TOWANDA - Global Tungsten & Powders Corp. announced Wednesday that it is eliminating 150 positions at its Towanda plant.
The reduction in employees is occurring because the plant has experienced a dropoff in sales in its wire and phosphor business, according to a press release from the company.
"The phasing out of incandescent light bulbs and technology changes that require less phosphor in fluorescent lamp manufacturing" has a resulted in a decrease in sales in GTP's wire and phosphor business, GTP said in its press release.
The positions being eliminated are all associated with the plant's production of wire products, which are used in a variety of industries, primarily lighting, said Craig Rieder, director of human resources at GTP.
The elimination of the positions is expected to begin in September 2012 and be completed by February 2013, the release said.
The reduction of the positions will be accomplished through retirements of employees, the elimination of temporary positions, the transfer of some employees to other departments, and layoffs, Rieder said.
Most of the 150 positions will not be eliminated through layoffs, although the exact number of layoffs that will occur is not known yet, Rieder said.
"Our other businesses (at the Towanda plant) are very strong," so they will be able to absorb some of employees whose positions will be eliminated, he said.
The plant offers a retirement incentive plan for employees who are eligible to retire, he said, explaining how retirements will contribute to the reduction of the 150 positions.
GTP's primary emphasis is the manufacture of tungsten and molybdenum powders with an additional emphasis on other specialty products.
Despite the reduction of employees, Andreas Lackner, GTP's president & CEO, confirmed the company's commitment to continued growth at the Towanda plant, saying: "Since 2008, GTP has invested over $60 million (at the Towanda plant) in their core tungsten powders business and the launch of a new product line (at the Towanda plant), components for solid oxide fuel cells. We plan to continue this investment level (at the Towanda plant), which is significantly higher than in previous years."
Rieder said that part of that investment will involve a planned expansion of the solid oxide fuel cell business at the Towanda plant.
Commercial production of components of solid oxide fuel cells recently began at the Towanda plant, he said. The planned expansion of the solid oxide fuel cell business will result in an addition of jobs at the plant, but it is not known yet how many positions will be added, he said.
The 150 positions that will be eliminated are all full-time, Rieder said.
The positions being eliminated are mostly production worker positions, but they also include quality control, maintenance and supervisory positions as well as other production support positions, Rieder said.
Global Tungsten & Powders currently employs 950 people at its Towanda plant and another 70 at its plant in the city of Bruntal in the Czech Republic.
Global Tungsten & Powders Corp., headquartered in Towanda, is one of the largest worldwide suppliers of tungsten and molybdenum powders and products, with over $600 million in annual sales.
James Loewenstein can be reached at (570) 265-1633; or email: jloewenstein@thedailyreview.com.
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