Thomas moving manufacturing of skid steer loader

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The future of Thomas Equipment Inc. is once again in doubt.

Thomas recently linked a deal with a global manufacturing firm to produce its skid steer loader in China, a move which will see production shift from its Centreville plant by 2009.

The deal, signed with Singapore Technologies Engineering's Guizhou Jonyang Kinetics subsidiary, will guarantee Thomas access to increasingly lucrative markets in China.

Thomas spokesman Brian Dobson said Friday the company will decide the fate of the Centreville plant near the beginning of 2009, when production is expected to begin shifting to the Chinese facility.

Centreville may continue to produce parts for the skid steer loader or manufacture equipment for other companies.

Dobson said the company may later sell the Centreville facility, but nothing has been decided.

"Thomas is a great name and it owes much of its success to the people who have worked at these facilities, but the market realities are what they are," he said. "To compete with the giants in the industry, these kinds of steps are necessary."

The 40 executives, administrators and support staff in Centreville will oversee the transition to the Chinese operation, and will continue to handle marketing, merchandising, dealer relations, engineering, production and quality control.

Dobson said the company hopes to retain 70 production jobs.

"The transition period will work hand-in-glove with Centreville right through 2009, and hopefully thereafter," he said. "If not, the production plant will operate with other assignments, utilizing its expertise going forward. The company has structured the change in this way to hopefully safeguard the production people."

Singapore Technologies Engineering is a US$4-billion global company, specializing in land, aerospace, marine and electronic equipment. Its Guizhou Jonyang Kinetics subsidiary, builds excavators and other heavy equipment. The deal, which could see Thomas begin producing other heavy equipment in addition to its signature skid steer loader, comes after the company experienced financial difficulties.

The firm went into bankruptcy protection in August 2006, shutting down its production plant and putting 141 people out of work. The company began recalling workers to resume manufacturing in November of that year. As the new company looks toward global expansion, Dobson stresses its Centreville plant remains a viable operation, and an attractive site for other manufacturing firms.

"There is already interest expressed and developments underway to have the plant available for other manufacturing needs in other businesses," said Dobson.

"The expertise and capability of the plant is effectively well known among companies. And we're confident that the workforce there will begin to make other things, and hopefully provide additional materials to Thomas."