KTTC Rochester, Austin, Mason City News, Weather and SportsPain deepens at Crenlo in Rochester

Pain deepens at Crenlo in Rochester

ROCHESTER (KTTC-DT) - Crenlo will lay off an estimated 55 more employees at its Rochester manufacturing plants this Friday.  The latest cut in the work force at Crenlo follows two other recent layoffs in the past six weeks.

"The risk of additional actions such as short work weeks and temporary layoffs remains," said Crenlo CEO Lance Fleming, in a statement. "Decisions on these actions will be based on the future actions of our customers."

Fleming says the company's major customers have again reduced their production schedules, meaning that there will be fewer Caterpillar and John Deere heavy machines built in the weeks ahead that will need enclosed cabs.  Crenlo produces those cabs, and is matching the production demand by racheting down its own production schedules. 

On Tuesday afternoon, Caterpillar announced it is laying off 2,454 workers at five plants in three states, Illinois, Indiana and Georgia.

Fleming says the company realizes the pain it is imposing on the families of its workers, and says Crenlo is "working hard to support them" during the economic downturn.  But, he says, the restructuring is necessary for the long-term success of the company.

"We are continuing with a very high level of support for our new product introductions and factory floor transformation and remain hopeful that the ramp up of these new products, and an improving economic situation, will result in additional staffing requirements," noted Fleming.

The CEO declined to confirm precisely the number to be laid off on Friday, saying the information was "Crenlo confidential," but indicated that "the 55 number is directionally correct."

One of the employees laid off in an earlier staff reduction tells KTTC NewsCenter that three new product lines are under development, and that workers are hoping that new business will bring jobs back to the Crenlo plants in Rochester.