Marlin isn't out of business, just relocating.
Tim
Smells like they are not planning to reopen anytime soon.
Remington executives told investors in early 2009 that the profit margin in its firearms division had dropped — even as sales surged after Obama's election — in part because of Marlin.
"This decrease was primarily due to an unfavorable product mix during the first quarter of '09, including product sales attributable to the Marlin acquisition," said Chief Financial Officer Steve Jackson.NORTH HAVEN — The Marlin Firearms Co. decision to shut down its plant has left workers stunned, and town and state officials wondering if there is anything they can do to reverse the decision.
The company announced Thursday it would be laying off its 265 employees in phases, starting in May. The shutdown will be complete in June 2011.
Workers said Friday they are sad, angry, shocked and upset. But, only a few would comment as they left the plant at the end of the day shift Friday.
“It’s not too good. Especially now. It’s very hard to find a job,” said one set-up operator, who didn’t want his name used.
“It’s going to happen. It’s just another day,” another said, not wanting to stop to talk about it.
“Everybody’s sad,” said Victor Casso of Hamden, a three-year employee who will be done in three months. “It’s terrible. I bought a house three months ago.”
Roy Gifford, the vice president of brands and research for the Freedom Group, Marlin’s parent company, said Friday that increasing costs played into the company’s decision.
“Even though our long-term prospects of the business look positive, due to economic factors beyond Freedom Group’s control, related to increasing costs and pricing pressures within the firearms industry impacting the entire Freedom Group of companies, we felt like we had to reduce costs,” Gifford said.
No decisions have been made as to where Marlin production will be relocated, he said. He had no comment on whether North Haven employees would be offered relocation.
Who would be laid off and when has been detailed in a closure notice to the state Department of Labor.
For example, the company’s 70 general machine operators — the largest job classification — will be let go from June through February 2011. All 24 assemblers will be gone by December. The 11 polishers will be released from September through next February. About 23 managers and other employees will stay through June 2011.
Gifford said employees who remain with the company until their scheduled departure date will be offered severance pay and company sponsored out-placement benefits.
As news sinks in that Marlin is closing, officials are turning their attention to what can be done to keep the plant open.
First Selectman Michael J. Freda said Friday he is attempting to set up a meeting with executives of Marlin’s parent company, in an attempt to reverse the decision.
Marlin, which began in New Haven in 1870, was sold to Remington Arms Co. in 2007 for $41.7 million. Marlin and Remington are part of the conglomerate overseen by the Freedom Group Inc.
Freda said that if he is successful in getting corporate executives to come here, he would work with state Sen. Leonard A. Fasano, R-North Haven, to have a “meeting on a much larger scale with state officials in attendance.” If not, he said he will go to North Carolina.
“My focus now is to not just accept the decision and do nothing. My focus is now to try to convince them to stay,” he said.
“It all ties in to a larger problem, and that is that Connecticut is a difficult state to do business in,” said Freda, adding he knows of manufacturing facilities in other parts of the country that are four times the size of Marlin, where it costs the same to do business as here.
Fasano and state Rep. Steve Fontana, D-North Haven, as well as Freda, are working with the Labor Department and the state Department of Economic and Community Development to provide workers and their families with what they need.
The legislators, who have spoken with Marlin officials and individuals at the two state agencies, plan to attend an on-site meeting and offer a job fair for employees.
Fasano and Fontana have also requested that the state Labor Department dispatch its Rapid Response Team to educate the workers about job-search assistance, unemployment benefits and training opportunities.
Nancy Steffens, communications director for the labor agency, said that the state has offered its assistance and is waiting for Marlin to accept.
Fasano said he and Fontana are pushing pro-business legislation that aims at preventing similar closures.
“Losing a job is always hard, but it’s especially difficult in this economy,” said Fasano. “Our unemployment numbers, that are constantly on the rise, highlight the need for legislators to be proactive in stimulating our economy.”
“The people who work at Marlin Firearms are part of the community and our first thoughts go towards helping them. Beyond that, we want to make sure we focus on job creation in Connecticut,” Fontana said.
U.S. Rep. Rosa L. DeLauro, D-3, said she was saddened to learn of the plans to close the Marlin plant, and has offered her support to Freda and others.
“With 265 employees, this business is a large part of North Haven, and its loss will have a palpable effect on the community and on the families impacted by job loss. I will continue to work with all parties involved to try and reach a satisfactory resolution to this unfortunate situation,” DeLauro said.
Marlin manufactures a wide range of long guns, from the historic Model 39 and 336 rifles, which are the oldest shoulder arm designs in the world still being produced, to the XLR Series, which are the most accurate lever action rifles in the world. Its lever action .22 repeater, now the Model 39, became the favorite of many exhibition shooters, including Annie Oakley.
There also is a manufacturing facility in Gardner, Mass.
Marlin ranks 14th on the town’s grand list. The assessed value of the property at 100 Kenna Drive is $10.5 million. The town expects to receive $246,500 in tax revenue from the company this year, $92,439 from real estate and $153,454 from personal property.
Freda doesn’t yet know whether the company will continue to pay taxes once it vacates, and he is uncertain of when the impact of the personal property loss will be felt.
