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NetShape Technologies said the Clearfield plant will be consolidated into its plant in Falls Creek. The Clearfield plant will cease operations in June.
The privately held company manufactures powdered metals components for various industries.
"Due to the underutilization at those two facilities, it is necessary for us to combine the operations," Chief Operations Officer Jeff Moorefield said. "We have an under-capacity situation and it no longer makes good business sense to operate both facilities. We must streamline our operations to maintain a competitive position in the marketplace. This move will increase our efficiencies and utilize the Falls Creek plant at a production level closer to its operating potential."
A press release from the Pennsylvania Department of Labor & Industry said there are bumping rights available for positions at the Falls Creek plant in accordance with seniority, job classification including skill and ability, and work performance. The closing will not affect any union
The Clearfield plant has 83 employees and it is expected that more than half of them will accept available positions in Falls Creek, which is 30 miles away.
"We have met with the work force at both plants to communicate our plans. We are sensitive to the needs of all our associates and will make every effort to assist them during this transitional period. We believe in open and honest communication and that is why we announced this action so early.
We wanted our associates to know as soon as the decision was made," Vice President of Human Resources John Maxwell said. "We are confident that the number of jobs moving to Falls Creek along with normal attrition will result in a significantly reduced number of employees that will be displaced."
The Clearfield plant was formerly Clearfield Powdered Metals. The Falls Creek plant was formerly Allegheny Powdered Metallurgy Inc., which began operations in 1982. Both were formerly owned by Hawk Inc.
