Local news reports indicate that Grede Foundries has laid off 50 workers from its operation at Reedsburg, WI. Weak demand for castings and rising raw materials costs are the apparent explanations for the downsizing. Grede v.p.-human resources is quoted that scrap metal has more than doubled in prices over recent months, impacting operating costs for the plant.
All departments of the foundry were affected by the layoffs. "We just looked for those functions that were not mission-critical at this point," Davis told the Reedsburg Times-Press. "We are implementing approximately a 7% reduction in the work force across all plant locations."
Grede also instituted new health care charges to employees and suspended holiday pay through the end of this summer.
Reedsburg is described as the largest of Grede’s foundries. The company operates nine foundries in the U.S. and a joint-venture operation in Mexico. Grede’s products range among gray iron, ductile iron, stainless steel, and specialty metal castings. Among its customers are manufacturers of automobiles, construction machinery, farm machinery and equipment, pumps, and compressors.