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

DATE: FRIDAY, April 1, 1994                   TAG: 9404010130
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: 
DATELINE: DUBLIN                                 LENGTH: Medium

MEMO SAYS VOLVO PLANS EXPANSION

The plant manager of Volvo GM Heavy Truck Corp. posted letters to employees Wednesday saying the company's board of directors has approved a plan to invest $200 million in an expansion of the factory.

"It looks like we're definitely set to expand, based on the information I have," said Sherman Blankenship, president of the union, United Auto Workers local 2069.

A letter from plant manager Bill Brubaker to employees said,"I am pleased to announce that the AB Volvo Board of Directors has approved the investment" to build a cab assembly plant and a paint facility adjacent to the plant.

Bill Walther, director of corporate affairs with the company's corporate headquarters in Greensboro, N.C., declined to confirm the expansion, except to say that a memo had been posted and "it was fairly positive."

"It's still being talked about and considered," Walther said. "Are we making progress - yeah."

In February, Volvo officials said the company wanted to spend $200 million to build the new facilities at the 1,400-worker plant. The plan is to shift cab-making operations from a plant that employs 170 people in Orrville, Ohio, here.

Walther alluded to that Thursday when he said, "It is a piece of what is being done in Ohio that is being considered. The truck assembly plant will stay there."

Regardless, Walther said the memo was not meant for public discussion. He did say that some sort of official announcement on the expansion proposal would be forthcoming in the next few week.

The memo went on the say that site preparation for the new facilities would begin in early June, and that production at the plant would have to increase. To do that, part of the truck-making operations may have to be moved to other buildings, to make room for more of the finished product.

"We're going to be building more trucks per day," Blankenship said. The plant currently rolls 60 a day off the line. "We're wall to wall."

The letter said there would be "dramatic change within our operations" in the future.

Discussion about the announcement filled the rooms at the plant Thursday, Blankenship said.

"People were definitely fired up about it," he said. "It's the greatest news there could be around here."

Brubaker could not be reached for comment Thursday.

by CNB