ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, February 8, 1991                   TAG: 9102080591
SECTION: CURRENT                    PAGE: NRV1   EDITION: NEW RIVER VALLEY 
SOURCE: 
DATELINE: FAIRLAWN                                LENGTH: Medium


RUMORS OF BUSINESS COME, GO

There's a new one every week - a rumor about some company buying the AT&T plant in Pulaski County.

Toyota. Corning. The U.S. government. Ingersoll-Rand. A customized bus manufacturer. Toyota again - that's a favorite.

There was one a few weeks ago that AT&T would rehire some of the hundreds of workers who have been laid off over the past year.

Tom Loner, local AT&T spokesman in charge of showing the plant, had to laugh at that one, although he said he wished it were true.

"It makes the job more difficult, and it's to be expected," Loner said of the rumors that seem to flood the valley on a weekly basis. "We knew going into it [that] it would be a problem."

The company's policy is not to respond to rumors unless someone specifically asks, he said.

"If I were to put out an official statement every time there was a rumor, that's all I'd be doing."

Rumors can be detrimental because they raise people's hopes, Loner said

People may be particularly prone to rumors about the AT&T site because the announcement last year to close the site - and eliminate 1,000 jobs - reverberated throughout the New River Valley's economy.

One rumor that turned out to be sort of true was that American Apparel had bought the plant.

"That was the hottest rumor we heard. We were under the impression they had worked out a deal," said one former employee who asked not to be named.

But Loner said American Apparel has not signed a contract.

"I would rank them as one of those that had a high level of interest," Loner said. "They're still interested, I believe."

One company canceled a visit that had been scheduled for this month. "We really don't know what the reason was. With the economy the way it is, companies are holding off," Loner said.

A group of economic boosters from Japan looked at the site this week as part of a tour of industrial facilities in the United States, he said.

Another company, which Loner declined to identify, has scheduled a visit this month.

Often times, neither Loner nor other local economic development officials know who the companies are. They may only identify themselves by a first name and end a visit or phone call with a "don't call us, we'll call you" kind of statement.

"When they talk with me, they tend to be quite vague," Loner said. The company representatives usually don't mention how many jobs would be created.

Loner said that some have indicated they might employ 1,000 over several years, although none have said they would bring in as many as AT&T had at its peak, about 2,500 jobs.

Loner said he remains optimistic that the plant will be sold. But until the dotted line is signed, the rumors are likely to continue.



 by CNB