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Graco to Dismiss 66 Workers in Lakewood Plant
Jessica Perry//July 28, 2005
The move is believed to be part of a bid to improve the plant’s profitability.Nearly six months after acquiring Gusmer, a supplier of spraying equipment, in Lakewood, Graco (NYSE: GGG) plans to lay off 66 workers, or one-third of its workforce, by the end of the year.
The Minneapolis-based fluid handling systems and components company has informed the New Jersey Department of Labor and Workforce Development that a downsizing will occur between October 3 and December 30. The move is believed to be part of a bid to improve the plant”s profitability.
Department officials will meet with employees beginning August 1 to discuss unemployment benefits and training programs it offers workers who are laid off.
Graco employs about 200 workers in Lakewood, where it makes spraying equipment for the automobile and construction industries. It purchased Gusmer in February for $45 million and created speculation that it would move some of the jobs to Minneapolis or Sioux Falls, South Dakota, where it does similar work.
In morning trading Graco shares were up $0.23 to $38.00.
