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BEDFORD -- MDL Manufacturing will downsize and restructure its operations in the Bedford County Business Park.
The company is not closing, but MDL will have a two-day auction of equipment and potentially its building in mid-June.
"Significant capital investments from 2013 through 2015 in equipment and a plant expansion, coupled with a 50 percent downturn from MDL's largest customer in 2016 and 2017 were primary reasons for the restructure," said owner Doug Lingsch in a statement.
The company provides precision (quality) manufacturing services for many industries including commercial, defense, energy, oil and gas.
"There are so many factors that go into making a decision like this, and in business, hard choices must be made. Due to fiscal constraints many cuts had to be made. The business was not going in a direction that emulated perfection to our customers and a fulfilling a rewarding career for the employees. In our case we needed to regroup, learn from our past and look optimistically toward the future," Lingsch said.
"The goal will be to turn this difficult time into a positive one, learning what we may along the way and become again the company we once were, a business providing a great experience for employees and customers," he added.
The company estimates a reduction of about 25 jobs. A number of former MDL employees have already been hired by area businesses. Lingsch plans to retain about 20 employees.
"This decision weighs heavily on me. I am incredibly proud of our employees. They are the reason for the success we've achieved. They are highly skilled, committed to quality and possess a great attitude," Lingsch said. "We are working with CareerLink to maximize all services available to our displaced workers."
The announcement is disappointing news for Bedford County.
"We are thankful that MDL's displaced workers are highly skilled and well-respected in the metal fabrication industry. Between our area's employers hiring them and CareerLink's services, we are hopeful that their transitions will go as smoothly as possible in this difficult time," said President Bette Slayton of the Bedford County Development Association. "Doug Lingsch is a talented and tenacious entrepreneur who is committed to quality products and services. We have confidence that he'll work through this restructure."
MDL purchased the facility at auction in 2003, when Defiance Metal Products closed its Bedford operation. Defiance Metal Products ultimately returned to the area and currently operates at the former Hedstrom facility on Sunnyside Road.
Meanwhile, Prestige Equipment and Koster Industries Inc. will conduct a two-day public auction at the MDL facility on June 12 and 13. The auction will feature more than 1,200 lots including late-model fabricating and CNC heavy machining equipment as new as 2015.
"This is an impressive offering of late-model state-of-the-art fabricating and CNC heavy machining equipment." said Frank DiSalvo of Prestige Equipment in a statement.
The equipment offered at auction will include carbon dioxide and fiber lasers, press brakes, CNC lathes, CNC boring mills, computer numerical control vertical machining centers, shot blast, support equipment, tooling, overhead cranes, forklifts, air compressors, plant maintenance and spare parts.
The 93,000-square-foot facility sits on 12.4 acres in the Bedford County Business Park and will also be offered for sale at auction.
"There are a number of options that may be available regarding the sale of the building," Slayton said.
Founded by Lingsch in 1987, MDL moved its headquarters from Maryland to Bedford in 2004.