REGAL-BELOIT CFO EXPLAINS MOVE
Monday, February 25th, 2008 -- 11:30 AM
Around 120 Neillsville workers will be looking for new jobs as Regal-Beloit announces plans to move production to Mexico.Employees were told Friday the company plans to "ramp down" production this summer, and permanently close the doors by 2009.
"(Our) primary competitors are, the vast majority, producing in low-cost countries such as China, Brazil and Mexico," explains Dave Barta, Chief Financial Officer of the company, "From a competitive standpoint, we had to make a move to lower costs."
The Neillsville facilities make industrial motors for manufacturing applications.
Barta acknowledges the market has been strong, and the company has been profitable, but global competition is forcing them to look elsewhere for labor.
"We compete with companies from all over the world. The unfortunate part is, to remain viable, you have to continually search out the opportunities to meet the customer requirements, which is a combination of service, quality and price," Barta says.
While Barta wasn't sure the of the exact number, Regal Beloit is believed to have thousands of employees in Wisconsin, including plants in Black River Falls and Wausau.
Despite the financially pragmatic approach taken in shutting down the Neillsville plants, it would be "jumping to conclusions" to assume Regal-Beloit will shut down other plants here in the state, Barta insists.
"They're all different. All our businesses are fairly unique. It's not possible to generalize across any other product."
Some customers still prefer quick, quality service over less expensive products, Barta says.
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