As Libbey continues to navigate its Chapter 11 filing, the company plans to close its Shreveport, LA, factory. The closure is part of cost reduction measures and to better align manufacturing capacity with lower levels of projected demand.
The company stated it will negotiate this recommendation further with the unions representing its employees prior to finalizing a decision.
“Over the last few years, we have experienced declining demand in our core markets, which has contributed to overcapacity,” said Mike Bauer, CEO, Libbey. “This has been exacerbated by COVID-19. The recommendation to close our facility in Shreveport will better align our cost structure with current and expected customer demand as we position Libbey for the future.”
Bauer also said that if the closure occurs, the company will leverage its existing U.S. and international manufacturing footprint and its sourcing capabilities, to continue servicing its customers and consumers.
“Although difficult, we believe this is a necessary step in transforming Libbey for success in the post-COVID-19 era, and we recognize the impact it could have on our 450 employees in Shreveport, their families and the communities in which we operate,” added Bauer. “We will work constructively with the unions representing Libbey employees and will keep all stakeholders informed as we consider our final decision about our continued operations.”
This tentative plan, if implemented, would wind down Libbey’s manufacturing operations in Shreveport by the end of 2020. The company’s distribution center in Greenwood, Louisiana, is not impacted and will remain open.