Southwire Announces Steps to Improve Manufacturing Efficiency

Feb 15, 2013

(Carrollton, Ga. - February 12, 2013) – As Southwire Company works to remain competitive in the face of market declines, the company has announced its intention to undergo significant changes this year, including the closing of the its manufacturing plant in Stouffville, Ontario and the relocation of its Canadian headquarters.

“"We continue to face challenges in the North American wire and cable market,” said Eric Schmidt, president of Southwire Canada. “While we feel the market has settled, we do not see significant improvements in the near future, leaving us with excess capacity and decreased production efficiency.”

Southwire intends to close the Stouffville operations this year and shift product orders to plants in other areas. The move will allow the company to reduce excess capacity, while taking advantage of the closer proximity of other facilities to raw materials. Southwire purchased the Stouffville facility, which employs about 150 people, from Cable Tech in 2006.

“The closure is not a reflection on our people, their performance or the quality of their work,” Schmidt said. “As our business continues to be affected by several factors, this is one of the tough decisions that allow Southwire Canada to remain profitable in an increasingly competitive market.”

To further the focus on efficiency, Southwire will consolidate its Canadian business units – including sales, marketing and support staff – under one roof in Mississauga, Ontario in late April.

“Frequent and improved communication among these groups allows us to better serve our valuable Canadian customers,” Schmidt said. “We believe these changes also will bolster our efforts to aggressively grow Canadian sales by leveraging our vast product portfolio, exceptional customer service, industry-leading innovation and relationships with strategic Canadian retailers, electrical distributors and utility companies.”

- Rob Boot