Continuously serving Kosciusko County since 1854
GE OEC Medical Systems announced Thursday it is closing its Warsaw plant at 501 Argonne Road. The plant will not be officially closed until July 19, 2002.
"The reason for the plant closure is the Warsaw plant is in metal fabrication and that is not a core competency in our business," company spokesperson Stephanie Bird said today.
Bird said OEC originally was founded in 1946 in Warsaw, where it currently employs 110 people. She said the plant started as an orthopedic equipment company.
Bird also said the company has several programs in place to help those 110 employees who will be losing their jobs.
"Some employees may be asked to stay to help through the transition," Bird said. "It's truly their choice."
Employees will receive severance, continued medical benefits and re-employment assistance programs including workshops, Bird said today.
The Warsaw plant will remain open for 12 months while the company makes the transition, Bird said.
OEC's headquarters are in Salt Lake City, Utah, and the company has a plant in Germany, as well as Warsaw's plant.
According to information received Thursday via e-mail from Ruben Berumen, president and CEO of GE OEC and general manager for Global Vascular: "The closing is intended to continue to improve GE OEC Medical Systems' long-term competitive position and make the business stronger."
Berumen's e-mail also said the following:
"At the root of this decision is the fact that we are not in the metal fabrication business, which our Warsaw facility handles. Our strategy is to depend on outside suppliers for this specialty. It is the economic reality of our situation.
"This is a difficult but necessary action to maintain competitiveness in this softening economy and we ask for the continued support of everyone while completing this conversion.
"This intended action is no reflection upon the performance of the individuals or teams in the Warsaw operation and we will ensure all employees are treated fairly and respectfully. During the transition time frame, we will provide comprehensive support to our Warsaw work force including severance, continued medical benefits and re-employment assistance programs. Our goal is to help employees make a successful transition to other employment or retirement as appropriate.
"Our core expertise is developing technology and customer applications and this is where we must focus our resources and future investments. Transitioning our operations in Warsaw to a variety of out-sourced suppliers is consistent with our overall strategy to provide the highest level of service and support to our customers.
Again, we ask you for your continued support throughout this transition. This is not easy news to give. The commitment of the employees in Warsaw has always been commendable and it is our duty to help them through this change."
