SAXTON - Seton Co. will close its Saxton plant by the end of the year, affecting nearly 200 workers after three decades in Bedford County.
The company, an automotive leather supplier, attributed the closure to ''unfortunate cost-cutting measures'' in light of decreasing vehicle production levels by domestic automakers and increased material and chemical costs.
Bette Slayton, executive director of the Bedford County Development Association, said the closure is ''disappointing and heart-wrenching,'' although understandable in today's economic situation.
''One needs to just look at the U.S. automobile industry and understand that suppliers to the industry are taking pretty major economic hits,'' Slayton said. ''It's just very sad news. We'll just have to work even harder and try to turn it around.''
Rodney Hammond, vice president and general manager of Americas and Asia for Seton Co., made the closure announcement Thursday.
Hammond said the ''wind-down of operations'' would take place by the end of the year, although the start date has not yet been decided.
The 200 affected workers represent all remaining positions at the plant, Hammond said. The most recent layoffs affected about 30 to 40 people earlier this year.
''The actions we are taking today are extremely difficult, given the talented group of employees and management in Saxton and our 31 years of operation here,'' Hammond said. ''That said, we are confident that this decision will help us remain competitive in the automobile industry and will ensure a long and successful future for the company in the challenging market ahead.''
Slayton said the No. 1 priority is assisting displaced employees through the Rapid Response Team, which coordinates with several agencies to maximize benefits available to laid-off workers.
''That's the foremost concern,'' Slayton said. ''Economic development is never done. This is why we continue to work to recruit new jobs into our community.''
This is the second major job setback in the county this summer.
In June, it was announced by JLG officials that their Sunnyside plant in Bedford would be one of several facilities affected by downsizing.
Those layoffs, company officials said, were brought about by a slowdown in nonresidential construction.
Slayton said Seton would work with her association to market the Saxton area and the company's building.
''They say nothing but great, great things about the high caliber of the rural class work force of Saxton,'' she said, adding that companies such as Bedford Reinforced Plastics and Captive Aire give her hope for a successful Bedford County economy.
The former is in a growth mode, Slayton said, while the latter, the nation's leading manufacturer of commercial kitchen ventilation systems, is about to begin hiring for its newly constructed plant.
''We will aggressively look to recruit somebody into the Saxton area,'' Slayton said. ''We'll be as creative and aggressive as possible. It's a great area. It's a great work force.''
Mirror Staff Writer Wendy McCardle is at 946-7520.
