Last modified: Tuesday, April 22, 2008 1:02 AM EDT
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| Plans by the British firm Cookson, which also owns Leach & Garner in North Attleboro, have local officials concerned. (Staff photo by Mike George) |
Jobs moved from Attleboro, Leach & Garner to close
BY JIM HAND SUN CHRONICLE STAFF
The Cookson Group is developing a facility in the Dominican Republic, a move that will have significant impact on both Attleboro and North Attleboro.
According to the British company's annual report, 200 local jobs will move to the Caribbean nation and its property in North Attleboro - Leach & Garner - will be closed this year.
The report says in creating the Dominican Republic facility, the firm will benefit from low wages and make the company more competitive.
The move mirrors the company's transfer of jobs from England to Thailand.
The annual report also states the company has already eliminated 60 jobs in Attleboro which it considered "redundancies."
The job losses come at a time when the city is financing the environmental cleanup and renovation of the former Swank factory on Pearl Street, which Cookson has purchased from the city for $800,000. The company has promised to locate hundreds of jobs there while the city has taken responsibility for the cleanups.
The city has also guaranteed a $2.4 million loan for Cookson while the federal government has committed another $1.9 million to refurbish the former Swank site. The city has also closed Hazel Street to create a campus for Cookson at the site.
Richard Powers, chief executive officer of Cookson's precious metals division, said the company is still committed to bringing jobs to the Swank building and a neighboring facility on Hazel Street. He said operations from other facilities are being consolidated in Attleboro.
"We're here for the long term, that's for sure," he said.
News of the job losses came as a surprise to many Attleboro officials who have been banking on Cookson to create more local jobs.
Max Volterra of the Attleboro Redevelopment Authority said he toured the Swank building recently and saw Cookson making preparations for housing more employees.
He said there are about 75 workers at the site already and another 100 are on the way from the Leach & Garner plant in North Attleboro. Cookson is well on the way toward fulfilling its commitment to put 300 jobs into the building, he said.
The transfer of jobs to the Dominican Republican is not worrisome as long as Cookson meets its commitment of eventually bringing the 300 jobs to Attleboro, he said.
"As long as they keep sending people to Attleboro, I'm fine with that," he said. "Who knows how these international companies work."
But, Attleboro City Councilor William Bowles, chairman of the council's finance committee, said he was disappointed to hear that jobs were being transferred out of the area.
"Both the city and Cookson have been working hard on a joint venture that will aid both parties," Bowles said. "I look forward to hearing from Cookson management what this will mean in Attleboro. I am still expecting them to honor their job creation pledge made to the city council at the former Swank facility."
At least one North Attleboro official was equally dismayed.
"I am very sorry to see anybody leave North Attleboro," Selectmen Chairman John Rhyno said when reached Monday night. He mentioned North Attleboro's single tax rate being business friendly.
"Why would anyone leave a community that is supposed to be pro business?" Rhyno asked. "No one wants to see any jobs go from the United States overseas."
In a statement from Cookson's precious metals division, Cookson officials said most of the 200 jobs going to the Dominican Republic will come from the facilities in North Attleboro and the Virgin Island, as well as reductions in overtime, temporary employees and outside contractors.
Powers said he could not say how many full-time jobs will be lost from the North Attleboro operations.
But the annual report states that Leach & Garner in North Attleboro will be closed this year and its functions transferred to either Attleboro or the Dominican Republic. Powers said a number of North Attleboro positions are being moved to Attleboro this week.
The transfer of the equivalent of 200 jobs to the Dominican Republic is expected to save the company about $4 million a year, according to the annual report.
The company said Attleboro will continue to be the center of its precious metals business.
"Cookson Precious Metals has made a strong and long-term commitment to establishing Attleboro as our principle place of business within the USA, and continues to integrate all of our USA employment into our Attleboro campus," the statement read.
Earlier, the firm transferred about 70 jobs from a New Jersey facility to Attleboro.
Cookson is an international firm with more than 17,000 employees in 35 countries. It has three divisions for dealing with ceramics, electronics and precious metals.
In recent years it has bought up local jewelry firms such as Leach & Garner, Masters of Design and Swank. |