NEW ULM, Mn. - Illinois-based cabinetry giant Elkay Wood Products will close its cabinet manufacturing facility in New Ulm, Minnesota, laying off the plant's 105 workers.
The New Ulm location - a dimension mill operation - hasn't reached full operational capacity in several years. For that reason, Elkay chose to consolidate its operations, and discontinue all operations at the New Ulm location. Elkay will move much of the facility's machinery to another of its dimension mill operations in Mifflinburg, Pennsylvania.
Mifflinburg local news reported that the Mifflinburg facility added 70 new employees in addition to the New Ulm equipment. With the new employees and machinery, Elkay expects production to double at the facility.
The 105 New Ulm employees must find different jobs before June 8, the plant's last day of operation.
“Ekay is committed to helping our employees in New Ulm find gainful employment after we cease our cabinet operation in the area,” company spokeswoman Linda Carliste said. “We want to stress that this transition has nothing to do\ with the efforts of our New Ulm team. We sincerely hope that the majority of our employees choose to apply for roles within the company. We realize that this will not be an option for some, and we are doing all we can to assist them through the transition.”
“We are excited about the benefits we expect to gain by bringing these operations together in Mifflinburg," said Carlisle. "We’ve found the local culture produces great people who work hard and care about delivering a quality product.
Family-owned since 1920, and headquartered in Oak Brook, Illinois, Elkay expanded its commercial offerings over four decades ago, and today delivers high-end sinks, faucets, foodservice fixtures, water coolers, drinking fountains and award-winning rapid bottle filling stations.
Elkay operates seven manufacturing plants in the U.S. and saw sales of $250 million in 2015. On the FDMC 300, Elkay is North America's fifth-largest cabinetmaker.
Have something to say? Share your thoughts with us in the comments below.