Somerset Foundries President Greg Frick said while operations have ceased at the Somerset Township facility he still believes it can be a viable business. (Michelle Ganassi) |
Plans were in the works to bring in investors to help keep operations at Somerset Foundries going, according to the company's president.
President Greg Frick said the management team was trying to find new investors. The plant laid off its iron workers Friday.
Frick said because of some problems with shipping items on time and other decisions, the Somerset plant had fallen into debt.
"The company, going back several years, had gotten themselves into some difficulty," he said. "In one way or another some debt had accumulated."
In May a new management team was hired, which included Frick.
"We made some improvements, established some relationships with our customers," he said. "We got to the point where we could be a viable business."
Frick said all that was needed was some investment capital. Since being hired he has worked with the management team to try to find some investors to secure the financial backing to keep the plant running.
"That's been our plan over the last several months," he said. "We have not, so far, been able to get that money. We've had some very good conversations. We're hopeful to get something finalized and get back into gear and resume some of the progress we have been making."
Frick said Byrnes & Kiefer Co. near Pittsburgh owns the facility. A message left for company officials was not returned Wednesday.
He said the company decided not to invest more money into the facility.
"The owners over the past several years consistently treated us well. They elected to not put in any additional money," he said. "The decision was made to lay off the employees and take a hard look at what the options are."
Frick said the layoff was a surprise to him as well.
"The investment we were going to get did not come in," he said. "They decided to lay off the employees and look at what the options are."
Frick was not working Friday when the announcement was made to the employees.
"Some of the employees were taken by surprise," he said. "The timing was not the best; the way it was presented was not the best; the plan wasn't the best."
He said he tried to be honest with everyone about the situation at Somerset Foundries, which is also known as Somerset Foundry & Machine Co.
"Everyone knew we had been in trouble, everyone knew that," he said. "I think they were surprised that we reached that point. I certainly understand why they were not happy, on the other hand it was widely known that we have struggled and did need the financing."
About 30 employees were working at the facility along with four office workers and four managers.
"We have a small crew here right now doing some final processing and product shipping," he said. "The primary operations such as molding and pouring have stopped. Until we have the necessary money in order to go forward there is not too much we can do."
If an investor is secured Frick said the workers will be called back "very quickly."
"Anyone who asked me my answer has always been the same," he said. "We made improvement. I'm confident this can be a viable company and we can succeed, but we need money."
Frick said that the displaced workers would qualify for unemployment. He is not sure what conversations happened with employees Friday but he has a meeting this Friday with the union representative to cover any concerns the union has.
President Greg Frick said the management team was trying to find new investors. The plant laid off its iron workers Friday.
Frick said because of some problems with shipping items on time and other decisions, the Somerset plant had fallen into debt.
"The company, going back several years, had gotten themselves into some difficulty," he said. "In one way or another some debt had accumulated."
In May a new management team was hired, which included Frick.
"We made some improvements, established some relationships with our customers," he said. "We got to the point where we could be a viable business."
Frick said all that was needed was some investment capital. Since being hired he has worked with the management team to try to find some investors to secure the financial backing to keep the plant running.
"That's been our plan over the last several months," he said. "We have not, so far, been able to get that money. We've had some very good conversations. We're hopeful to get something finalized and get back into gear and resume some of the progress we have been making."
Frick said Byrnes & Kiefer Co. near Pittsburgh owns the facility. A message left for company officials was not returned Wednesday.
He said the company decided not to invest more money into the facility.
"The owners over the past several years consistently treated us well. They elected to not put in any additional money," he said. "The decision was made to lay off the employees and take a hard look at what the options are."
Frick said the layoff was a surprise to him as well.
"The investment we were going to get did not come in," he said. "They decided to lay off the employees and look at what the options are."
Frick was not working Friday when the announcement was made to the employees.
"Some of the employees were taken by surprise," he said. "The timing was not the best; the way it was presented was not the best; the plan wasn't the best."
He said he tried to be honest with everyone about the situation at Somerset Foundries, which is also known as Somerset Foundry & Machine Co.
"Everyone knew we had been in trouble, everyone knew that," he said. "I think they were surprised that we reached that point. I certainly understand why they were not happy, on the other hand it was widely known that we have struggled and did need the financing."
About 30 employees were working at the facility along with four office workers and four managers.
"We have a small crew here right now doing some final processing and product shipping," he said. "The primary operations such as molding and pouring have stopped. Until we have the necessary money in order to go forward there is not too much we can do."
If an investor is secured Frick said the workers will be called back "very quickly."
"Anyone who asked me my answer has always been the same," he said. "We made improvement. I'm confident this can be a viable company and we can succeed, but we need money."
Frick said that the displaced workers would qualify for unemployment. He is not sure what conversations happened with employees Friday but he has a meeting this Friday with the union representative to cover any concerns the union has.
