ATKINS, VA - Masco will close its two Atkins, VA-based Merillat cabinetry plants in January. Approximately 300 people will be affected by the closures, according to SWVAToday.com, which reported the news.
Employees were notified of the closures Nov. 15. Excess capacity brought on by the downturn affected business, leading to the closures, said Jonathan Klinger, vice president of marketing for Masco. Cabinet component manufacturing from these two plants will be moved the company’s Mt. Jackson, VA, and Sayre, PA, facilities.
Masco's plan to increase manufacturing efficiencies has led to the elimination of 5 million square feet of manufacturing capacity, Klinger said. The previously announced closure of the DeNova countertop facility in Lakewood, NJ, is set to take place later this month. Another countertop facility in Ocala, FL, was also idled in October.
In its third quarter fiscal statement, Masco reported revenues of $291 million for its cabinetry and related products segment, a decrease of 5% compared to 2011. In a statement, Masco's CEO Tim Wadhams said, "We are encouraged by the continued strength in new home construction activity. In our Cabinet segment, we announced actions during the quarter, including the closure of a [DeNova countertop] manufacturing location and a headcount reduction, which we expect will improve our efficiency and reduce costs by approximately $20 million on an annual basis."
Masco brands represented in this segment include: KraftMaid Cabinetry, Merillat, Quality Cabinets, Moores, DeNova Countertops and Tvilum.