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Local Manufacturers See Increase in Business
Monday, November 02, 2009 11:56 AM


(Source: Danville Register & Bee)trackingBy Tara Bozick, Danville Register and Bee, Va.

Nov. 2--Local manufacturers say they're seeing marginal to substantial growth in business, yet still remain cautious about the economy.

Goodyear Tire & Rubber Co. reported an 11 percent increase in sales in the third quarter from the second quarter, but that's down 15 percent from sales in 2008's third quarter, according to the company's earnings release.

Third quarter operating income still reflects weak industry demand compared to the prior year, the release stated.

Roughly 60 Goodyear workers are back on the job in the Danville plant, said Jo Andrews, communications manager for the Danville plant. The company anticipates adding more employees as business increases.

"Customers want our Danville-built tires. As a result, orders are increasing," Andrews said. "We're glad to see some employees returning as well."

Nestle, which produces Nestle Toll House cookie dough and Buitoni refrigerated pasta, re-entered the marketplace in mid-August with a new batch of products, said factory manager Jan Harris of Nestle Danville.

Four months since the company voluntarily recalled cookie dough to protect consumers, the Nestle Toll House refrigerated cookie dough sales are approaching pre-recall levels, Harris said in an e-mail.

The company also launched a line of new Buitoni Riserva filled-pasta products, which has been successful despite the economy, Harris added.

"Certainly, it's been an unusual year for us here in Danville, but as we look back, it's clear that Nestle people know how to rise to the challenge," Harris said in an e-mail. "I'm very proud of our team here and of the entire Nestle organization for their unwavering support. It means a lot."

Business bounced back in August at Essel Propack, an India-based plastic tubing manufacturer with a factory in Danville, said Sandy Holston, business unit head of Danville.

The fall tends to be a normally heavy season for the Danville facility, which makes tubes for toothpaste and oral care products.

Company staff cut back hours -- about two Sundays a month -- earlier in the year. The inventory supply chain was full April through July as retailers didn't replenish as much stock until knowing how the economy would go.

Now, workers are back to a full workweek and operations are running 24-7, Holston said. The facility is close to being on par with where it was at the start of the year before the slowdown.

"The whole market's been on its way back. Our customers are beginning to fill their pipelines back up again," Holston said.




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