Document text
Business purchase lays off 65 workers By David Preszler Sixty-five Medford workers will be laid off over the next six months because of Key Technology�s purchase of Advanced Machine Vision. Local economic development officials say, however, they still hope to change the company�s mind. The layoffs will occur over the next six months as Key moves Advanced Machine�s manufacturing operations to Walla Walla, Wash., and closes the corporate office, Key officials said Thursday. The layoffs and pending loss of a high-tech manufacturing plant deals a resounding blow to the area�s economy. "It�s disappointing to think that they are going to pull this facility out of here," said Bruce Laird of the Oregon Economic and Community Development Department. Laird said he and other local officials plan to contact Key and convince them to reconsider. "We�re not just going to roll over," he said. "We are pretty unhappy to see this development and we are going to do everything we can to turn this around." Key bought Advanced Machine in a $35 million deal that closed Wednesday. Both companies make complex optical sorting equipment used in manufacturing to detect defects. Five of the workers to be laid off will come from the corporate headquarters with the other 60 being cut from operations of SRC Vision, Advanced Machine�s leading subsidiary. Another 20 SRC Vision employees will be offered the chance to relocate to Walla Walla, where Key is based. Those who decline also will be laid off. Key officials said it just made sense to combine the two companies� manufacturing operations because they produce similar products. "There are a lot of redundant processes," said company spokeswoman Anita Funk. "Combining the processes makes it much more efficient." The two companies� marketing and sales forces also are being combined, and Funk said the 60 layoffs cover a variety of areas. When the dust settles, Key will have about 570 employees worldwide. Key will keep SRC Vision�s research and development facility and some other smaller operations in Medford. Those operations will employ about 62 people. The move of the Medford manufacturing operations is expected to be complete by February. The layoffs will occur in phases as different pieces head north. Combining the two manufacturing operations was apparently inevitable, though Funk said she did not know how seriously management considered locating a combined plant in Medford rather than Walla Walla. Key was founded in 1948 in Milton-Freewater and moved across the state line to Walla Walla in 1990. The pitch that Laird said Southern Oregon officials will make is that Key as a whole would be better off here than in Walla Walla, given Medford�s proximity to Interstate 5 and larger technical workforce. "The parent company isn�t located in quite as strong of a technology area as we are," he said. "We think there are logical reasons to talk to them about this area." Laird said SRC Vision is just type of support-oriented, high-tech manufacturing that Medford is well-suited for. Medford�s location nearly midway between the West Coast high-tech power centers of Seattle and the Bay Area make it perfect for companies wishing to serve both, he said. No changes will be made at Advanced Machine�s other subsidiary, Ventek Inc. in Eugene. Ventek has 22 employees. Seven more former Advanced Machine employees � who worked out of its European office � will be transferred to Key�s European offices. Obituaries | Sports | Business | Classifieds | Tempo | Prime Times | So Oregon Sites | Outdoor Journal | Subscribe | Contact | Movies | Advertise | Real Estate Showcase | Archive | Editorials | Letters to the editor | Religion | Wake-up Call | NIE | Cyber Chef | Job Network | So Oregon Weather | WSJ Northwest | Forums | AP Wire | AP Money | F.A.Q. | Awards Ottaway Newspapers, Inc. The Community Newspaper Subsidiary of Dow Jones & Co, Inc Copyright �The Mail Tribune 2000, Medford, Oregon USA