August 1, 2002

Jonesboro Trailmobile to reopen

Great Dane has no immediate plans for Charleston Plant

By ROB STROUD Staff Writer

CHARLESTON -Great Dane officials are reopening the former Trailmobile plant in Jonesboro, Ark., but have not yet decided how they will use the Charleston plant, which closed in December.

Phil Pines, chief executive officer for Great Dane, said the company is holding off on making a decision regarding the Charleston plant because business conditions are still a problem for the trailer industry nationwide. Great Dane's plans to open the Jonesboro plant, are market driven, Pines said, because the Jonesboro plant had stronger trailer sales than the one in Charleston.

Trailmobile closed the two plants Dec. 3 and filed for bankruptcy Dec. 12. In late May, the U .S. Bankruptcy Court in Chicago accepted Great Dane's $10 million bid for the two plants as well as the equipment, inventory and intellectual properties.

Jeanne Gustafson, director of the Coles Together economic development organization, said she has been in regular contact with Great Dane during the past couple of months and was aware the company has no immediate plans to reopen the Charleston plant, which employed about 300 people.

Gustafson said Coles Together has offered to market the plant should Great Dane decide to sell it, and the company has been receptive to the offer.

"Our No.1 priority here is making sure people have a place to work, " Gustafson " said.

Officials in Jonesboro also are trying to create employment opportunities for people in their area. The Jonesboro Sun news- paper reported on June 18 that the Jonesboro City Council endorsed Great Dane in its attempt to enroll in the Advantage Arkansas tax incentive program for industries.

On July 2, a Primedia Business Magazines & Media' on-line story noted the purchase of the Trailmobile plants was the second major acquisition by Great Dane in less that a year. The company in November acquired the Danville, Pa., and Abbeville, S.C. plants of Strick Trailer Corp.

"These new locations are strategically located relative to our existing plants, allowing us to better serve our diverse customer base," said Great Dane President Kit Hammond in the article.

Great Dane currently operates a large plant in Brazil, Ind., and a smaller one in Terre Haute, Ind. Both of the .former Strick Trailer plants are reportedly still in operation.

Justine Brooks, a program director for the Danville Chamber of Commerce in Pennsylvania, said Great Dane has retained the Strick Trailer plant's approximately 240 employees and intends to add to the production staff there within 12 months.

Strick Trailer's former management team seems to be pleased with their new bosses, she said.

"They have told us their business has increased since the change," Brooks said.

Contact Rob Stroud at rstroud@jg-tc.com.

Used with permission from Mattoon Journal Gazette & Times Courier