Management changes and restructuring are afoot at TV glass components manufacturer Techneglas. The company is under the leadership of a new president from the Japanese parent company and layoffs are e…
Management changes and restructuring are afoot at TV glass components manufacturer Techneglas. The company is under the leadership of a new president from the Japanese parent company and layoffs are expected at plants. The firm is seeking to cut costs and improve efficiency in the face of foreign competition, new technologies and a weak economy. Long serving Techneglas president and CEO L.T. “Tim” Hickey is retiring, as are three members of the executive staff. Other changes, including an undetermined number of layoffs, are likely during the next two months, a company official said 11 June 2003. “We“re looking at a lot of things right now,” said Joe Schaeufele, vice president of manufacturing and engineering. The number of layoffs at the company“s Columbus, Ohio plant, which employs 400, and at the plant in Pittston, Pennsylvania, is being finalized, Schaeufele said, adding that Techneglas plans to continue operating in Columbus. The company also has 70 workers at a plant in Perrysburg, Ohio. The new Techneglas president is Motoharu Matsumoto of Nippon Electric Glass, Techneglas“ Japanese parent company. A team of Nippon officials has been evaluating the Columbus operation in recent weeks. Besides Hickey, who is leaving Techneglas after 30 years of which 11 as president, Dan Falcone, chief financial officer; Chris Ball, vice president of sales and marketing; and Jim Williams, director of international licensing are also to step down. Their successors will be chosen from among the existing staff, Matsumoto said in a news release.. “Workers are concerned,” said one employee who asked not to be identified. The recent restructuring is the latest in a series of changes in recent years at the Columbus Techneglas plant which makes glass funnels for TV picture tubes. Employment at the plant is down from a high of 1,200 before Techneglas idled one of its two furnaces in 2001 to concentrate on components for large-screen and high-definition TVs in anticipation of changing consumer tastes. However, competition from China and other countries, plus the growth of plasma screens and other new technology, has forced Techneglas to deal with business declines, Schaeufele said. The private company does not release sales or earnings. Techneglas, which says it is the largest manufacturer of television glass in North America, produces 4 million funnels a year down from 12 million in recent years, according to Schaeufele. Competitor Corning Asahi Video Products recently closed its CRT plant in Pennsylvania with the loss of 1000 jobs. In the opinion of Sean Wargo, director of industry research for the Consumer Electronics Association, Techneglas still has time to solidify its business or find new products because the use of new screen technologies is not expected to catch on for several years. Nippon chose Matsumoto to lead Techneglas because of his experience in technical sales and building customer relationships, the company said. Matsumoto joined Nippon Electric Glass in 1982 and most recently managed the company“s global sales. Prior to that, he was managing director of Nippon“s UK operation in Wales, the company said.