Lufkin Industries shutting down

Published 5:45 am Wednesday, May 18, 2016

Lufkin Industries, seen in this Times file photo from May 17, is shutting down and ceasing all operations today.

Lufkin Industries, which has been a staple of Cullman’s industrial neighborhood for more than a decade, is shutting down and ceasing all operations in one month.

The transmission gear repair company reportedly alerted employees to the shut down on Tuesday, and the plant is slated to close on June 17. Lufkin opened in 2002 and is located in Industrial Park 2. The closure affects all 30 employees at the location. The company was purchased by GE in recent years, and the shut down comes as part of a larger consolidation for Texas-based Lufkin.

A message left at the local Lufkin plant was not immediately returned. In a statement, GE Oil and Gas confirmed the consolidation of manufacturing operations in Cullman and across Lufkin, Texas.

“These are incredibly challenging times in the oil and gas industry. We constantly review our operations in order to remain competitive and continue to meet the needs of our customers. It’s becoming clear that this will be a ‘lower for longer’ environment,” GE reported in a statement. “We anticipate this restructuring will result in workforce reductions. We know how hard this is for the Lufkin community, so these aren’t decisions we take lightly. This decision is in no way a negative reflection of our workforce. We have to make the best decisions for the long-term health of the business. We are committed to working closely with our respective unions and providing affected employees with resources to help transition.”

Dale Greer, with the Cullman Economic Development Agency, said his office was obviously disappointed to hear about the closure — though he hopes some of the displaced workers may be picked up by other industries in the area.

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“You always hate to see a layoff like that, people who have been there for a number of years. It’s difficult anytime someone walks in and says in month you won’t have a job, and they’re closing the operation,” he said. “Unemployment is very low here, and we have companies expanding, and several are looking for employees. Hopefully there will be an opportunity for some of these to be absorbed into those growing positions. But regardless, it’s a difficult situation.”

Greer said the economic development agency plans to assist in any way possible to find a new tenant for the Lufkin property.