What a difference 14 years makes. Here's a news article reprinted from a Kentucky newspaper from 2002:
July 8, 2002
(Reprinted from The Advocate Messenger)
Matsushita Home Appliance Co., Danville, Ky., is alive and well and plant officials held a news conference Wednesday to get the message out.
"We want to dispel rumors and comments about the business," said President Mitsu Yoneda.
The industry, which makes Kenmore and Panasonic vacuum cleaners, recently announced a buy-out offer to its employees. It also has been plagued with rumors that the entire plant will close ever since the microwave production line was moved overseas in 2000.
J.D. Lewis, vice president for administration, said the same information released to news media Wednesday has been presented to Mayor Alex Stevens and Judge-Executive Tony Wilder as well as financial leaders in the community.
Yoneda said the buy-out is being made to reduce the work force to make the plant more competitive in the home appliance business. The plant has been successful in the past "and we are positive about our present and future in Danville," Yoneda said.
Matsushita became the sole owner of the Whirlpool Corp. facility on Lebanon Road in 1994. There is also a production facility in Mexico with 270 employees, primarily assembly workers.
Some of the bright signs for the plant future were outlined by J.D. Lewis, vice president for administration.
In 2001, the plant had record sales and the goal for this year is to exceed those sales by 5 percent and to exceed production by 4 percent.
"We are capturing more of the market share," Lewis said.
The quality of the upright and canister vacuum cleaners was recognized this year by Consumer Reports magazine, which rated a canister and an upright as number one in their respective categories. The plant makes about 150 different models, which can mean only differences in color or be entirely different machines. Sixteen new models are being introduced this year.
Matsushita is the largest producer of canister vacuum cleaners in the United States. The Danville plant, which currently employs just over 1,000 people, handles all aspects of vacuum cleaner production in-house, including design, computer modeling, production, testing and shipping.
There is also an expansion that has started with the addition of 72,000 square feet. "We are expanding to bring in a new business," Lewis said.
However, it will be a couple of months before Matsushita will be announcing what the business is. About 30 employees will be added.
The plant is also spending about $9 million this year for equipment and tools, including a new computer system that will include rebuilding the business database. "I don't think we'd put that in if we were going out," Lewis said.
Between 1997 and 2001, $50 million was invested in the plant, including a 240,000-square-foot expansion, new plastic molding machines and the use of a computer to create prototypes.
The buy-out is suppose to trim staff to a size that allows the company to stay competitive in a marketplace that has seen vacuum cleaner prices drop. Forty percent of all uprights sold in America cost less than $99, Lewis said, and 40 percent come from Mexico or China.
"We are in a global competition."
Lewis said it is not known exactly how many employees will take the offer to leave the company with a benefit package that includes 2 1/2 weeks of pay for every year worked. Employees eligible have until Aug. 5 to make a decision.
Lewis expects the response to be high. "We think we're going to be hiring people" because of the numbers that could retire early. If not enough take the offer, employees may have to be let go.
One factor driving the buy-out is a two-level pay scale the plant put in place when it acquired full ownership from Whirlpool. If those at the higher pay don't take the buy-out, they will likely have a decrease in pay.
The company is also making other changes to keep expenses down. Matsushita had been paying 85 percent of health insurance premiums. As of Jan. 1, the company will only pick up 80 percent of the premiums.
Matsushita has filled all its existing covered space, Lewis said. When the microwave line was moved here, the industry had to lease storage space elsewhere in the community. With the microwave line gone, part of that space is again used for a warehouse. In addition, a new assembly line has been added in part of the old microwave section.
"We are happy with the direction we are going," Lewis said. "Our vision is that we will become the number one vacuum cleaner manufacturer in the world."
