Lynchburg-area factories could benefit from auto bailout

If the White House’s plan to rescue the Big Three automakers with an emergency bailout works, it could help some factories in the Lynchburg area.

As vehicle sales and production fall, local companies that make parts for cars have received fewer orders.

Azdel Inc., based on Enterprise Drive, has delayed an expansion it began earlier this year and laid off some of the workers who had been hired for that expansion.

“They’re just not making as many cars,” said Paul Bristow, Azdel’s product manager.

The company makes composite fabric material that covers vehicle ceilings and is used in more than 100 models, Bristow said.

Azdel’s orders this year are 20 percent below where the company expected them to be, falling back to 2006 levels, Bristow said.

The fall has partly been offset by some vehicles switching to Azdel’s product, because it is tougher and less heavy, Bristow said.

In November 2007, a Korean company bought Azdel, which then announced an expansion that would add production capacity to its Enterprise Drive factory, along with 15 full-time positions and 15-20 temporary ones.

“Up until now, this year has translated into hiring people,” Bristow said.

“We staffed up, preparing for growth,” said Lutheria Smith, Azdel’s human resources director. The company reached 140 employees at its highest point this year.

When the growth in orders didn’t materialize, the company laid off 25 workers in November. Smith said about one fourth of those employees were salaried and the rest were hourly.

Azdel also delayed the expansion of its production line, probably until the second quarter of 2009, or “until our orders start going up again,” Bristow said.

He said Azdel’s success, at least in the short term, depends on the survival of the Big Three automakers.

The automakers’ troubles also have hit home at the Archer Creek Foundry in Campbell County, which makes metal castings for automobiles. Its parent company Intermet filed for bankruptcy in August and 38 workers were laid off at the local plant.

Another local manufacturer, Parker Hannifin, makes gaskets and seals for automotive engines and transmissions. Although the local plant had a small layoff in June, no further cuts are planned.

“They feel that they’re the right size for the volume coming in,” said Jim Cartwright, corporate communications manager for Parker Hannifin. “They feel comfortable … with the number of people they have.”