GARNER, Iowa (Dec. 15, 2015) — Tire service vehicle developer Stellar Industries Inc. is exiting the horse and livestock trailer manufacturing business and will focus on its core business — hydraulic truck-mounted equipment.
Garner-based Stellar said it plans to wrap up its Kiefer Manufacturing Inc. business in Sneedville, Tenn., by year-end and convert that unit's Kanawha, Iowa, plant to a Stellar company effective Jan. 1.
Stellar said it has been negotiating with a potential buyer for the Sneedville plant and hopes to finalize details of the sale “in a timely manner” in order to aid in a smooth transition for employees and new ownership.
“This was a difficult business decision that we considered carefully,” said Stellar Industries President Dave Zrostlik, without disclosing Kiefer's annual sales or other financial details.
“As an employee-owned company, we are proud of the products made by our hard-working employees. We are committed to treating our employees with dignity and respect, and helping them with the transition moving forward.”
Approximately 35 employees will be affected. All Sneedville employees will receive severance, vacation and personal pay, Stellar said. Kiefer Manufacturing has been in business since 1974; Stellar bought the company in 2008.
The company has also been working closely with Hancock County Mayor Thomas Harrison to assist in job placement opportunities and training for employees at the plant in Sneedville.
“While this has been a difficult decision, Stellar Industries has taken the appropriate steps to assist the Kiefer Manufacturing employees in Sneedville by working collaboratively with our offices and workforce development,” Mr. Harrison said.
“We will begin job coaching and host a job fair…with the goal of placing each person. Employment is the key to the community's success, and I am hopeful we will be able to retain jobs locally through the sale of Kiefer Manufacturing.”
Stellar said it will complete as many orders as possible by year-end; manufacturing warranties and replacement parts will be transitioned in the sale of the facility.
Once the transition is complete, Stellar plans to use the Kanawha plant to meet rising demand for Stellar products and strengthen market share.
Kiefer is one of five Stellar affiliated companies. The others are: American Eagle Accessories Group, a manufacturer of truck-mounted air compressors, heavy-duty drawer systems, and various other truck accessories; X-Tra-Lift, an installer of pickup-bed-mounted hydraulic lifts; Stellar Truck & Trailer, a truck equipment service, repair and installation business; and Valley Industries L.L.C., a fabricator of custom-designed trucks, trailers and lube skids.
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