Tyler Pipe Cease Production Media Release
October 16, 2008
Tyler, TX, October 16, 2008 — Due to the downturn in the economy and the rapid decline in new housing construction nationwide, Tyler Pipe Company today announced its intention to cease production on the Impact molding line at the South Plant for at least the full 2009 calendar year. The Impact molding line produces ductile iron waterworks fittings that are primarily used in water distribution systems. Demand for those products is closely correlated with national housing starts and the associated expansion of water utility infrastructures. It is anticipated that the closure will take effect on or about December 17, 2008, but the actual production schedule for the remainder of 2008 will be communicated pursuant to normal plant procedures.
This action will result in a workforce reduction of approximately 185 positions. To help affected employees with this transition, Tyler will be providing job placement support after the final day of production.
Whether production in the South Plant restarts after 2009 will depend upon the recovery of the fittings market and the overall economy, as well as global and other competitive factors. The North Plant and Wade operation will not be directly affected by this announcement since they provide soil pipe, soil fittings and specialty drains which serve the commercial plumbing market.
“We very much regret that this action has become necessary, and we have explored all feasible options to avoid job reductions in Tyler,” said Richard Tatman, VP & GM. “These are dedicated employees that have allowed us to deliver quality products manufactured in a safe and environmentally compliant facility. The announcement today should not detract from their excellent contributions to the plant and our company. It is simply the result of eroding market demand tied to the decline in national housing starts”.
The company anticipates that many of the employees could be recalled to replace those lost through normal attrition. The company emphasized that it remains committed to its facility in Tyler, and will continue to make capital investments at both the North Plant and Wade operations. As an indication of the company’s commitment, over the past five years it has invested more than $50 million in upgrades and modifications to the Tyler facilities including industry leading environmental health and safety systems.
About McWane Inc.
McWane, Inc. is a family-owned business based in Birmingham, Alabama, with companies across the U.S. and around the world. The McWane family of companies casts ductile iron products, including pipe, valves, hydrants, fittings and plumbing products, and manufactures fire extinguishers, fire suppression systems and steel pressure vessels. McWane is a leader in delivering clean, safe drinking water while focusing on safe, environmentally friendly manufacturing processes. With more than 7,000 team members, McWane has a longstanding commitment of supporting the communities where our team members live and work. For more information, visit mcwane.com.