Huffy Blames Cutback on Asian Competition

Huffy Corp. said it plans to close its factory in Celina, Ohio, within a year, cutting up to 1,000 jobs, or about 25% of its work force, blaming stiff competition from Asian bicycle makers that has kept prices down. Huffy said it is looking to shift its bike production to Mexico or elsewhere outside the United States. Employees will not be affected for at least 60 days, the Miamisburg, Ohio-based company said. Huffy had been in talks at the plant over a union contract due to expire June 5. The union was demanding a double-digit wage increase to make up for cutbacks it accepted in 1995. Huffy expects to take a second-quarter charge of $16 million to $20 million because of the restructuring, which result in a loss for the period. Huffy’s shares fell 19 cents to close at $15.13 on the New York Stock Exchange.