BUSINESS MEMO: GATES RUBBER TO REDUCE PRODUCTION AT CHARLESTON

Gates Rubber Co. will reduce production at its Charleston, Mo. operation.

The reduction will eliminate about half of the 360 jobs at the plant.

Production of a large-diameter hose, used primarily as automotive radiator hose, will be phased out over the next 18 months at the Charleston operation, said plant manager John V. Noonan.

Production of long-length spiral hose and small-diameter hose will continued, along with the Charleston distribution operation, which was added to the operation two years ago.

To implement the changes at Charleston, Gates will move some production of large-diameter hose to a Gates facility in Altacomoco, Mexico. The remaining production will be phased out by 2002.

Noonan said Gates officials intended to bring other production to the Charleston plant, but no definite plans or timetable can be announced now.

The Charleston plant is about 20 years old, and has experience significant growth over the past two years. The distribution facility was added in 1998.

Meetings area being held at the plant to assist employees through severance packages and other placement support.

The first reduction is scheduled to occur in December of this year.

Gates Rubber Co., headquartered in Denver, Colo., operates 63 factories, and 43 distribution centers in 18 countries.