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Panasonic Moves Canister Vacuum Production to Mexico
Oct 5, 2005
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Panasonic Home Appliance Company said it will lay off 290 employees and 80 temporary employees as early as December 2005 because production of its canister vacuum cleaner is being relocated to Monterrey, Mexico.

According to Panasonic, it moved production in order to compete with low labor costs overseas, said J.D. Lewis, vice president of administration. Lewis said Panasonic will work with local and state government to find other jobs for the employees.

The company said it planned to retain approximately 125 positions in Danville, Kentucky, U.S.

John Stigall, the chairman of the Boyle County Industrial Foundation, said two new industries, 3B and Aircraft Braking Systems, will hire 150 people locally.

"These are the types of things that we always dread and tried to be prepared for," Stigall said. "Between now and March I hope we can take care of the other people," Stigall said. "We will be working with everybody to make it as smooth as possible."

Boyle County Judge-Executive Tony Wilder said he will petition the Bluegrass Area Development District to work with employees in Danville who face unemployment.

"Obviously, I'm distressed by it, and I'm particularly thinking of all those people who have devoted their entire work life to Panasonic," Wilder said. (AP, The Advocate-Messenger)

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