TDK to cease VCR,

CD-R production; job loss will be partially offset by expansion of sister

company

MUNFORD

[email protected]

TDK Electronic

Corporation (TEC) has announced it will close its manufacturing operations

at its Peachtree City plant, which currently produces VHS videotapes and

recordable CDs.

The shutdown

is part of a restructuring for TEC, which will eventually result in the

loss of approximately 180 jobs, according to information released by the

company Thursday morning. CD-R production will end on or before March

31 while VHS production will end on or before April 30, the news release

stated.

Once the shutdown

is complete, approximately 100 packaging and distribution jobs will remain

in TEC's Peachtree City plant, the company indicated.

But almost

100 terminated TEC employees may be hired at TEC's sister company in Peachtree

City TDK Components USA (TCU) which has 97 openings almost immediately,

said TDK Human Resources Manager Henry Deveikis.

TEC just celebrated

its 20th anniversary of producing VHS tapes in Peachtree City in December,

Deveikis said. The CD-R production began approximately three years ago,

he added.

TEC Plant Manager

Joji Sagasaki said the decision to eliminate nearly two-thirds of the

local workforce was a difficult one, although the company has done business

here for over 20 years. He cited "marketplace reality" as part

of the decision, while the company indicated the reason was due to "changing

marketplace conditions, industrial shifts and competitive outlook for

these products.

"TDK's

VHS and CD-R products will continue to be produced by TEC's non-U.S. affiliates,"

according to a news release issued by the company.

"We hope

to be able to transfer many of our affected employees into available positions

within the company or its sister company TCU," Sagasaki said. "We

are confident, however, that the balance of our employees have the training

and work experience that will make them valuable assets to any company,

and we are committed to doing everything we can to ease their transition

to new employment."

The company

will conduct job fairs at the plant and invite a variety of potential

employers to the plant in attempts to help employees find new jobs, Sagasaki

said. The company will also hold employee workshops on resume preparation

and successful job interviewing skills.

John Alexander

of the Georgia Department of Labor said that agency would also assist

in finding employment for the affected TEC employees.

A separation

package will be offered to affected employees, including continued medical

benefits for a specified period of time, Sagasaki said.

The job opportunities

with TCU will be available later this year as it plans to add about 80

new manufacturing jobs, Sagasaki said. Those jobs will involve the production

of NL coils, which are used in cellular phones and other electronic devices.

Once NL coil

production is fully operational, TCU will have approximately 380 jobs

at its Peachtree City facility.

Also, there

are another 17 open positions at TCU which TDK officials hope to fill

with employees from TEC, said Deveikis. Interviews have already begun

for those jobs and hopefully those transitions will occur almost immediately,

he added.

"We're

trying to minimize the impact as much as possible," Deveikis said.

The city has

received notice of the impending shutdown, said information specialist

Betsy Tyler. The employees being eliminated were notified earlier in the

week, Deveikis said.