Pella Closes Tucson Window Plant, Announces Iowa Job Cuts

November 10, 2008

Pella Corp. halted production at its Tucson, Ariz., window plant in November due to the continuing housing market downturn and a decline in renovation spending.

The company has not ruled out the possibility of reopening the plant when the housing market rebounds, reports spokeswoman Kathy Krafka Harkema. The Tucson facility is the company’s smallest vinyl window manufacturing site.

“This isn’t a matter of shifting jobs to another location or outsourcing. It is a direct result of the dramatic drop in new construction from record levels a few years ago,” says Mark Hinkie, Pella corporate vice president. “The volatile housing economy and financial market turmoil has touched everyone from consumers to lenders, real estate agents, builders and manufacturers. Unfortunately, after doing all we could to adjust, we must suspend Tucson production in late November to reduce excess manufacturing capacity.”

The Tucson facility, which employed 65, was opened in 2005.

On Nov. 7, the company also announced the inactivation of 66 seasonal or “flex” manufacturing workforce positions in Pella, Iowa.