A longtime Mead foundry has laid off about half its employees after its only customer, a Michigan company that bought the foundrys name and sales operation in April and locked up all of its production, cut back on its orders.
The foundry, which long was known as Inland Foundry Co., now is called The Foundry. It adopted that name in April after its owner, Ray Davis, sold the longtime ventures casting patterns, sales operations, and rights to the Inland Foundry name to East Jordan Iron Works Inc., of East Jordan, Mich.
The sale, which didnt include the foundry operation itself, was made through an affiliated company, called Inland Foundry Sales Inc., that Davis formed specifically for the sale, and which still operates as a unit of East Jordan Iron Works.
As part of the sale agreement, The Foundry, which is located at 11250 N. Market, in Mead, agreed not to sell products to any other customers besides East Jordan Iron Works, says Davis.
Last month East Jordan cut back on its product orders to The Foundry, which makes manhole covers and rings. That caused the company to lay off 19 hourly workers and one salaried employee, says Davis. Before the layoff, the company employed 41 people, he says.
Rich Brandell, marketing manager at East Jordan, declines to discuss the companys sales or orders.
He says Inland Foundry Sales, the unit through which East Jordan bought Inland Foundrys name and sales operation, currently employs seven people here and markets The Foundrys products to municipal customers throughout the Northwest.
Davis says he does not anticipate any additional employee cuts at The Foundry.
It appears without anything in writing that they (East Jordan) will continue to buy from us after the first of the year, says Davis.
Inland Foundry was formed in the early 1960s. Davis bought the business in 1983.