Clondalkin Pharma & Healthcare announces 32 job cuts by January

An Evansville manufacturer says it is losing business from its largest client, and the plant will lay off employees as a result.

Clondalkin Pharma & Healthcare has notified the Indiana Department of Workforce Development that the company expects to lay off about 32 manufacturing employees by the end of January.

Clondalkin is a Dutch company that makes pharmaceutical packaging. Clondalkin acquired the Evansville plant, which previously operated as Keller Crescent Co., in 2007.

Clondalkin submitted the layoff notification as a requirement of the Worker Adjustment and Retraining Notification Act, also known as the WARN Act. Under that act, employers must provide advance notice of mass layoffs or plant closings that meet certain criteria.

In a letter addressed to the state workforce development department, Clondalkin Director of Operations Chris Feagans wrote that the plant laid off 13 employees Dec. 5 and expects to lay off about 19 additional people on Jan. 9 or within 14 days after that date.

The layoffs are necessary, Feagans wrote, because the Evansville site's largest client intends to start using new vendors, which will result in "a substantial loss of orders" for the plant. That single client represents about 50 percent of the plant's total workload.

"When and how much work is to be transferred to their new vendors is determined by the client and the precise timing of such is unforeseeable. They have announced their intention to complete the process by the end of the first quarter of 2012. At this time we do not know with any certainty when and how many more layoffs will occur," Feagans wrote.

Feagans' letter to the state does not name the client, and attempts to reach Feagans by phone were unsuccessful.

Source: Courier Press