After filing for bankruptcy protection last week, Texas-based Intermet Corp. laid off 38 employees at its Archer Creek Foundry in Campbell County.
Company spokesman Gordon Cole confirmed Wednesday morning that the layoffs occurred Aug. 15. He had said earlier that day he was not aware of recent or impending layoffs at the plant.
He said the scaleback in employment is based on reduced business levels. The foundry makes metal castings for automobile manufacturers, which have decreased production this summer as vehicle sales dropped.
The plant employs at least 300 people. The company has declined to release exact employment numbers.
The company’s Chapter 11 bankruptcy filing allows it time to restructure its business and its debt, according to a news release from the company. The company also sought permission through the bankruptcy filing to use its cash assets to continue opera-tions and pay its employees.
“We’ll continue to review all of our operations in the months ahead as we move forward,” Cole said. “It’s part of the ongoing evaluation of our business. Any decisions regarding employment and operations will continue to be made on the basis of our busi-ness levels.”
For more information on Intermet’s layoffs and a reaction from Campbell County officials, check back at NewsAdvance.com or read Thursday’s edition of The News & Advance.
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