Brewer auto parts plant to close in 2010

Brewer auto parts plant to close in 2010


By Eric Russell
BDN Staff
BANGOR DAILY NEWS PHOTO BY KATE COLLINS
Brewer officials announced Monday that manufacturer ZF Lemforder will phase out operations at its Brewer facility by mid-2010. Buy Photo

BREWER, Main — A local automotive parts company that employs 127 people in eastern Maine announced that it will be completely phased out by mid-2010 in yet another ripple effect of the sagging national economy.

Representatives from ZF Lemforder Corp., a worldwide supplier of driveline and chassis components with U.S. headquarters in Northville, Mich., were in Brewer on Monday to deliver the bad news.

“We are saddened to learn that the Brewer facility will be phased out,” D’arcy Main-Boyington, Brewer’s economic development director, said in a statement. “The city has worked closely with ZF Lemforder for many years, and they have been a great part of this community. The loss of these jobs and their corporate citizenship will be a blow to the entire region.”

The German company, which operates 119 plants in 25 countries, indicated that other plants in the U.S. also will be consolidated in the coming months.

“The industry is facing unprecedented consolidation and commoditization of the product base,” said Bruce Wrenbeck, vice president for chassis components at Lemforder. “With the significant reduction in vehicle production volumes and a continual increase in competition, we are forced to make very difficult decisions in order to maintain our viability.”

The Brewer plant, located in the city’s East-West Industrial Park, opened in 1980 as Lemfoder’s first North American plant. It produces tie rod ends and ball joints for a number of vehicle makers, foreign and domestic.

A sister facility, Brewer Automotive Components, opened in 1989 in the same industrial park as a joint venture between ZF Lemforder and Somic Ishikawa of Japan, another leading parts manufacturer. Lemforder stressed on Monday that Brewer Automotive Components and its employees will not be affected by the recent deci-sion.

Lemforder in Brewer has experienced several minor setbacks in recent years that have shrunk its work force considerably.

In October 2004, the Brewer plant laid off 18 employees because of a lag between contracts connected to one of its production lines and a weak national economy. At that time, Lemforder employed 315 in Brewer, according to published reports.

In March of last year, the plant had a “temporary volunteer layoff” that affected 10 workers, five fewer than the company initially anticipated. Those layoffs were related to a strike by the United Auto Workers union against American Axle & Manufacturing Inc.

Just last month, the company announced that 45 employees at the Brewer plant would be furloughed — or temporarily laid off — for about a month in a cost-saving measure.

Bryan Johnson, a spokesman for Lemforder, said the December 2008 layoffs were precipitated by General Motors and Mercedes shutdowns. With no cars being manufactured, he said, there is no demand for the steering components made at the Brewer plant.

David Farmer, spokesman for Gov. John Baldacci, said he was unaware of the Lemforder announcement, although he was not in his office Monday in observance on Martin Luther King Day. Baldacci was in Washington, D.C., for the inauguration of President-elect Barack Obama.

“I can say that the [state] Department of Labor will offer as much assistance as it can to help these workers,” Farmer said.

Main-Boyington said the city of Brewer also will assist in the transition process, which is likely to begin later this year. Johnson said some employees will be offered severance packages.

The Lemforder spokesman also said the company will work with the city to find another tenant for its industrial park.

erussell@bangordailynews.net

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Comments
45 comments on this item

University of Maine annual career fair is Jan. 28, I suggest you folks check it out. I found a great job there, better place to find a job than the career center. Be proactive, a year's notice can just as quickly turn into 6 months.

This is great, more jobs being lost, we're all struggling to make ends meet, pay bills and keep warm and were is our fearless leader? Oh ya, he's Awestruck (as the BDN put's it) in Washington drinking wine (photo in BDN) at who's expense? I'm sure it's not his. Come back up here and save us John Boy!!!!!

I worked back in the 90's for a few years for ZF Steering Gear/Lem. It was a great comapny to work for. I'll say the German leadership had pride in they're work sent out the door. And they treated me well for my hardwork. It is tough seeing jobs go due to the crumbling auto market.

My wife's company had over 50% of they're sales in the auto industry and had phased out of the auto industry into the medical field. Four years ago companies they did business with were falling behind on they're payments and were moving into many months without payment.

It's to bad they couldn't retool into another market. Sad to see them go. As I recall there was another plant across the street, are they still up and running?

It was just a question of time before this plant closed. It is so far away from suppliers and the end buyers. Ship product all the way to Maine process it, then ship product back out of Maine. Shipping costs alone must have been herrendous. It is clear that Maine is dying a slow death when it comes to jobs. Glad to see Baldy is enjoying himself with his Tucks, Cheese and Wine and of course Lobster. Maybe he will leave a resume in Washington not that Obama would want a LOSER like him anyway.

It says in the arcticle that the BAC across the street will not be effected. I dont want this to sound bad, but why when a paper mill shuts down or any big plant shuts down we bend over backwards for the people that lost there jobs. I understand its a hard time and work is hard to come by. But according to the BDN Cianbro hired a bunch of new people right down the road. Also we help out these people who lose there jobs but what about the guy that loses his job from a pizza shop or some other small business. He is left to fend for him/herself. If you lose your job is sucks. But you need to find another job just like any other person. The state is having a hard time making cuts, we dont need to spend more money trying to help these people. If they want to be trained to do something else go back to school. There are resources out there make them find them. Dont spoon feed them.

You've got some strange views mudboginmainer.

On 1/20/09 at 07:44 AM, Mainesurvivor wrote:

"You've got some strange views mudboginmainer."

Is that a polite way of calling him an idiot?

If the spelling in these postings says anything about Maine labor, its no surprise that they're headed elsewhere.

Its a sad state of affairs that a Governor and local econmic team had no idea a major manufacturer was in trouble. These decisions are not made over night. Its time political leaders get their heads out of the sand and maybe become a little more proactive. Thank goddness Obama is going to take care of them as soon as he is sworn in today.

And someone said shipping costs were to high,...its funny you can's ship to Michigan from Maine cheaply...but you can from China ..i don't get it?

As for they type of jobs leaving with lemforder...unlike walmart or target product was brought to lemforder and value was added to it and it was sold. Target / walmart brings things into the state and simply sells it takes the profits and sends that out of the state. we need more industy and less big box stores

Screw your spelling comment..we just write it quickly..you get what comes off our fat fingers.

Exactly.. You tell him.

Re: Its a sad state of affairs...

Just because Baldacci didn't hear the announcement because he was out of state doesn't mean that people weren't aware (btw: I did not vote for Baldacci). Virtually EVERY major manufacturer is in trouble. Not to mention this is a German company with decisions made across the Atlantic. I do agree with you that big box stores are a MAJOR plague in this country, but that Obama will fix everything??? This country is going to tank this year with everyone thinking he is the answer to all the worlds problems. P.S. Although they are a WHOLE lot better for an economy than Walmart and Target, Lemforder's profits are sent not only out of the state but out of the country!!!

But you missed the point. Lemforder profits were made adding value to things they made. They simply didn't bring in wrapped donuts and sold wrapped donuts at a higher cost. They were making true profits of labor. The profits of the labor went to the community as donations, the state as taxes, payrolls, and profits for other other US locations and if any was left over may have indeed eneded up in Germany.

The same can be said for the box stores...but the profits of labor are only realized by the manufacturer who make the items the box stores sell.

For decades the informed populous of Maine have sent the John Martin's, part time school teachers, and a Pat Lamarche or two to Augusta to enact enforce or otherwise make laws that have had the end effect of being anti-business/anti-growth.

The State of Maine has repeated elected left/liberal tax and spend eco radical representatives and that our world economy is forcing the departure [any] business is merely the first ripple of what will be a wave--.

The good people of Maine planted these seeds and the harvest is upon them.

Maine is one of the safest places in the nation to live.

** It has more [police] force per capita than any other state in the nation

Maine is the 2nd 'greenest' state in the nation

** the permitting process is second only to CA.

Maine spending on education is unrivaled [per capita]

** though graduates have no place to work

I do offer that [any of] the above is a bad thing - merely that every action has a cost - - check out CA. situation.

-------I'm not sure everyone is unhappy to see [yet another] ME. C. shut down--after all somebody voted for the folks in Augusta / Washington.

--Do ''Not'' offer--!

Do ''Not'' offer ---should proofread!!

madison is there anything in this state that isn't John Baldacci's fault. The entire country is in the toilet and you sit here and blame Baldacci. You really have problems

Ceeblue, you obviously had lapsed into a coma during the McKernan, King years. McKernan lied about how far in debt this state was. King had a million dollar short fall but everything is the democrats fault. I'm sure the 8 years of Bush that has put us into the mess we are in will be Obamas fault.

'Kate123' You are correct about McKernan 'Coma' is perfect -- !

---I am not asserting [blaming] any 'one' or any political party -- simply pointing out that the educated electorate has chosen the path Maine is now on.

Nor do I infer that the Maine has made [any] bad choices--simply that it is where it is because of choices--and the inherent cost therein

I point out Maine is [very] green/safe and educated. --- and impossible to do business in.

Simply an observation or two----

'May God Bless our new president.

CeeBlue, what do you mean when you say, "[Maine is] impossible to do business in." I'm not disputing your statement by any means - I think it would be beneficial for all of us to have it explained and you sound like someone that could do that.

Hey look, 1 person who likes Baldy. I knew I could find someone. Took a while.

'Kate123' not only did McKernan lie about the budget -- but he remains the only Gov. in history of this country to retroactively enact land use laws that punished and otherwise negated the citizens of Maine who in compliance; all in the name of 'preservation'

I do not believe that any of the myriad of decisions that have led Maine to where it is today run along [any] party lines.

** Snow and Collins are Republicans ?????????

I simply point out that the educated populous of ME. have consistently chosen to follow a 'certain' agenda-- and the results are---and will be---.

Everytime a UMO or the college system has a spending referundum on the ballot I vote against it. All we do is train our kids well so they can move to another state for work. UMO should get out of the engineering school business....there's no industry in maine to support it.

Hey nearbangor - that comment you just posted is the most ridiculous thing I've read in a long time. I can only assume that you didn't go to college yourself, otherwise you'd have a better understanding of how important education really is.

'David889327'

Perhaps mine is a jaded view in that for the 30 + years I worked [employed people] in ME. I was in the Land/wood -- R. estate/development business.

We had the 'brutal' W. comp. rates/road taxes and had to receive certification to cut our own land-----and if we were to even think about selling it--ME.'s division laws originate where 'private property rights' are dirty words.

The last development we were involved in---has a $5000.00 per lot add on --- just to cover the Eco. compliance !! In many instances the towns 'would' work with us---but the wisdom from Augusta handcuffed us--

Did I mention taxes--!

I'll stop -- but thank you for asking.

Kate123, for you to pretend (as all good Democrats do) that Angus King was not a Democrat IN EVERY WAY BUT NAME is just hilarious. He was such a coward (one can only conclude it was cowardcie) that he didn't dare to come right out and declare himself a Democrat (after all, he would have been elected either way). His actions since he left office have only made clearer what we already knew: Angie was a Dem, all right.... (oh, and I voted for Baldy once. Fool me once, shame on you. Fool me twice, shame on me.....)

Thank you, CeeBlue, it needs to be discussed and better understood by all of us. I might add something - the "preservationism" concept that Maine has more or less adopted over the past 30 or so years, is indisputably a glorious notion, but has not always been helpful, in my opinion, of sustaining traditional economic activity, though some of it, such as anti-pollution, is for good reason. However, it seems that Mainers have been asked to take quite a hit in establishing this preservationist utopia. Maybe we need to fine-tune the balance. I'm still skeptical that we can survive on the fruit of the "tourism industry".

The recent Sears Island decision is a perfect example of how Baldacci has let the environmentalist control economic development in this state. Give two thirds of the Island to a nature conservency and allocat the other third for a deep water cargo port. What businessperson in their right mind would invest in developing an industrial site when it is surrounded by the enemy, who, with the government backing, always gets the upper hand? Every time a long shoreman so much as farts, the eco-nazi's would file a lawsuit. There was a golden opportunity to create substantial economic activity in this region, However, it is clear that the current administration seems to think we will be better off selling stuffed toy lobsters to tourist three months a year. That being said, I really don't think there was anything that Baldacci could have done that would have changed Lemforder's decision.

David889327 -- It may be that 'someday' the [extreme] green stance that the good citizens of Maine support will turn out to be the wise choice.

In the short term it was/is painful -.

Only God knows.

Lemforder has struggled for several years now on the high cost of electricity, which their plant uses to great extent. This also applies to transportation cost. Brewer's plant spend's considerably more in electricity and transportation, then other such Lemforder plants in America. Brewer City Hall has been working with the folk at Lemforder's for quite some time now, in trying to assist with their issues. We are not surprised that the end is nearing. Brewer collects about $500,000 per year in taxes. Sixty Percent (60%) of which is personal property. At this time the City owns this plants building, and the assessed value is $27 million. The hope is that Lemforder will either buy the building outright, or the option of paying the lease value for the duration of the lease. Since the final closing of this plant will not occur until late next year, as the crew dwindle's, hope is that those presently employed will have a greater opportunity to secure other jobs. Larry T. Doughty, South Brewer. larrytdoughty@yahoo.com..www.ourstory.com/larrytdoughty/

Correction Larryt39, the city owns the Building that Lemforder uses as a warehouse, the Company owns the main production facility.

"It may be that 'someday' the [extreme] green stance that the good citizens of Maine support will turn out to be the wise choice.

In the short term it was/is painful -. " --CeeBlue

I agree. But it does, does it not, have to be recognized in the present, as a component of the so-called "bad business environment"? I.e., should we maybe instead of considering it a current liability, consider it an "investment in the future"? I can't make up my mind with certainty either way.

Kate123 - you must have your blinds pulled in your glass house in OT not to see whats going on. I do not care if a person is a Dem or Rep, what the color of their skin is, what religion they worship, what their race is or what tooth paste they use. What offends me is some self righteous pompous arrogant individual what only knows half the issues but proclames they know everything. I voted for John Baldacci for his first term, but saw what he did and promised trying to save the OT mill but in reality screwed the people of the state of Maine. His pompous attitude along with Angus King in preventing the Indians from having a casino but did not oppose the racino in Bangor. Yes Kate I do have a problem, it's the elected idiots making the wrong decisions and corporate greed that put us in the toilet. Kate remember the Pie Plate, Shoe factories, Woolen Mill and all the other industry in Old Town. No there demise wasn't Johns fault but other elected idiots caused it. Lets flush and start over, Maybe Obama will be the answer.

And Steve Bost, from what I hear, is not easy to do business with. I have heard this from building contractors. He doesn't like to give anyone a break

Excuse me madison, but if you had a clue you would know that John Baldacci was not for the racino. He was put to a city vote, as it should be. He has always been against gambling, he did not "screw" anyone out of a casino. He has been very up front about that from the start. Talk about someone only knowing half of the facts, look in the mirror. And the shoe factories, pie plate, woolen mills lost out to overseas industries. Italian shoes are all you hear about in any movie or TV show, Nikes aren't made here, they are made in sweatshops. New Balance is the only sneaker any of us should buy. Big industries started dieing with the environmentalist. Clean air, clean water, which yes we should have but we have so many rules and regulations the companies can make their products cheaper and pollute other countries so they do it. We should tax the hell out of those companies, but we don't so until you are ready to change how you shop, where you shop and buy only made in USA nothing will ever change.

Hey nearbangor, both of my sons graduated from UMO Engineering. They both found jobs in Maine but left Maine for almost twice the money. One for Georgia and the other for Alabama. They decided not to work in a Third World Country like Maine for Slave Wages.

Madison - it was not legislators who caused the closure of textile, shoe (and soon to be paper) factories in Maine. It was the general population, who prefer to buy cheap stuff from Wal-Mart instead of items produced locally.

On 1/20/09 at 08:08 AM, Bangorian wrote:

If the spelling in these postings says anything about Maine labor, its no surprise that they're headed elsewhere.

perfect candidates for modern computer programming. Lemforder was older mentality for jobs, I tried it for one day, and got quite sick due to a problem from my previous job...just one day, I was all done. There is other ways to go without hurting oneself, noone likes to guide to it.

"What offends me is some self righteous pompous arrogant individual what only knows half the issues but proclames they know everything." Which one are you Madison, self righteous, pompous or arrogant? Baldacci WAS against the Racino in Bangor.

exactly what are you trying to say bxr3main? I've read your comment 3 times, and still not sure what your point is. What exactly does "older mentality" mean? What did your day with Lemforder have to do with an illness from another job? Are you saying the workers at Lemforder should persue careers in computer programming, or is it people who can't spell that should. That was a pretty cryptic post.

Bangorian wrote:who prefer to buy cheap stuff from Wal-Mart instead of items produced locally.

Most would love to buy things produced locally if the prices of these items were not mostly driven upward by overpriced Union Wages.

Nobody wants to work but everyone wants high pay. Come on. Older mentailty means you have ridden it out this long time to move out of the way. :) If I were hiring I would want energetic positive attitudes. Not poor me stories!

boogyman, sorry-Oops. Correction due on my previous posting. The City of Brewer owns the warehouse, not the actual Lemforder Plant. The warehouse has six years to got to fulfil their lease obligations. They could pay off their lease now, and own the building. Larry T. Doughty, South Brewer

Now for Kate123- What are you talking about? That Steve Bost is hard to work with? Obviously, you don't know what your talking about. Steve Bost is always looking out for our taxpayers, and that is his responsibility. Unfortunately Kate, there are some out there, that are looking to cut corners, at Brewer's expense. We don't generally allow contractor's or anybody else to run over us..Larry T. Doughty, South Brewer...larrytdoughty@yahoo.com.www.ourstory.com/larrytdoughty/

When is the Quirk Auto Group in Bangor going to close? I've heard rumors. Anything to say Jack Quirk?

Mainesurvivor-----Where did you hear a sorry remark like that one? Rumors from who? Or is this yours to start?? And I'm sure that Jack Quirk will be reading this comment section!

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