CRT glass manufacturer Techneglas filed for Chapter 11 bankruptcy on 1 September 2004 after abruptly closing its Columbus, Ohio plant in early August 2004, laying off 382 workers.
The company said in…
CRT glass manufacturer Techneglas filed for Chapter 11 bankruptcy on 1 September 2004 after abruptly closing its Columbus, Ohio plant in early August 2004, laying off 382 workers. The company said in filings in the US Bankruptcy Court in Columbus that its debts to its 20 largest creditors total USD 50.2 million, including USD 48.9 million to two Japanese banks, the Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corp. Techneglas was the largest manufacturer of television glass in North America before announcing in August 2004 that it was shutting its plants in Columbus, Perrysburg (both Ohio) and Pittston, Pennsylvania. Workers have been cleaning up the Columbus and Pittston plants and preparing inventory for sale, Techneglas spokesman Joe Schaeufele said. The Perrysburg factory, which employs 50 workers, will stay open until November 2004, he said. Despite the possibility of the company emerging from Chapter 11 if it can get its finances in order, Schaeufele said the factories are not expected to reopen. “Chances are we will not come out as a manufacturing company, but there is chance to evolve into some sort of distribution company,” he said. Techneglas also has begun negotiations with its union, Glass, Molders, Potters, Plastics and Allied Workers, in Columbus and Pittston, over severance and health benefits. The status of health and retirement benefits remains unclear for many workers, according to officials with the Columbus union. Techneglas made glass cathode-ray tube panels, funnels for the back of television screens and other components. The company is owned by Nippon Electric Glass Co. of Japan. Techneglas, which has been laying off workers since 2000, finally fell victim to cheaper foreign competition. In addition, Nippon wanted to accelerate development of other products, as CRT screens are being superceded by flat screens. On 3 August 2004, Techneglas abruptly shut down its Columbus plant and announced the closure of the two other operations, ending the jobs of 1,100 workers. The bankruptcy case will be heard by Judge John E. Hoffman Jr.