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[April 2002]
Lenox Inc to Consolidate USA Production; Oxford Plant to Close
Lenox Inc - a subsidiary of Brown-Forman Corporation - announced on 23 April 2002 a consolidation of its USA production facilities.The Lenox China giftware factory in Oxford, North Carolina will close in April 2003. Production of bone china holloware will be moved to the company's Kinston, North Carolina plant. The ivory china giftware currently being produced at the Oxford facility will be sourced overseas.
The closing of the Oxford factory will result in the loss of 372 jobs. There are currently 319 production workers and 53 staff at the plant. The factory and property along with remaining equipment will be sold following the factory closure in April 2003. The moving of the bone china holloware production to the Kinston facility will require a building addition and will add approximately 30 jobs at that location.
Additionally, the Gorham Silver factory in Smithfield, Rhode Island will cease production of sterling flatware in med-December 2002. The equipment and production will be moved to the Lenox factory in Pomona, New Jersey.
Employees at both factories who are losing their jobs will be offered severance packages, including job training and help in seeking future employment. "We regret the necessity of this action and extend our appreciation to the affected employees for their many years of fine work," said Lenox President Stan Kragel.
Pre-tax costs of about US$11 million to close the two manufacturing facilities will be incurred in Brown-Forman's fourth quarter of this fiscal year and are part of the company's previously announced business improvement initiatives.
ENDS