ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, August 16, 1996 TAG: 9608160049
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
DATELINE: BEDFORD
SOURCE: REBECCA JACKSON-CLAUSE LANDMARK NEWS SERVICE
Rubatex Corp. said Thursday the company is about to begin the first phase of a three-step, $6million plan to improve its plant and equipment, a promise company officials made less than a month ago when a workers' union and management came to terms on a new labor contract.
Rubatex, which with 820 workers is Bedford's largest employer, said it will begin by spending about $2.3million to correct deficiencies in the mix mill department, where rubber compounds are created. The plant makes foam rubber for various industrial uses and consumer products.
"Customers today expect a better product, and we owe them the best," said Steve Turner, operations manager. "First, we will upgrade the heart of the operation, which is needed to make consistently good quality batches of rubber. It helps the rest of the process. ... We'd like to see the operation grow, and we're looking to build up this plant."
He said "the wheels are already in motion" on the first phase, which could take three years.
Following improvements to the milling operation, or possibly dovetailing with them, will be a $500,000 upgrade of plant laboratories.
The third phase will involve consolidation of two extrusion lines for greater efficiency. Turner said it was too early to tell whether that move would result in any layoffs or reassignments of workers but added that automation will replace some manual operations.
The plant's workers last month initially rejected and later approved a labor pact with Rubatex. Had terms of the new contract been rejected, the company threatened to move the Bedford plant's extrusion line to a facility in Arkansas, at the cost of 300 local jobs.
Price Parker Jr., president of United Steelworkers Local 240, called the renovation an indication management intends to fulfill its promise to improve the facility:
``That's a good sign. ... This is a partnership where we'll work together and we'll all win."
LENGTH: Short : 45 linesby CNB