[DWM] magazine has confirmed that Jeld-Wen is set to close its patio door plant in Wedowee, Alabama. A total of 66 employees are affected, with separations occurring throughout a wind down and closure process, Caryn Klebba, head of global public relations, told [DWM]. “Some were affected as of the announcement,” Klebba said.
Employees were notified August 1, both in person and by letter. Production is expected to stop November 1, 2024, with final facility closure by early December. Separations will be completed at the final closure, Klebba said.
Production at the Wedowee facility will be moved to the company’s plants in Kissimmee, Florida, and Pataskala, Ohio.
The move to close Wedowee follows an announcement in April that Jeld-Wen would close two of its other facilities, one in Vista, California, and another in Hawkins, Wisconsin, while discontinuing its Auraline brand of composite windows. The Vista plant is expected to close by the end of third-quarter 2024, Klebba said, with transitions in Hawkins occurring by the end of the month (August 2024).
The company is on what CEO William J. Christensen recently described as a “transformational journey,” with changes designed to improve performance, including a consolidated footprint. The company is also focused on utilizing scale and streamlining sourcing. Among the foundational actions listed in a recent presentation are structural cost reductions across North America and Europe, and additional productivity in sourcing and logistics.
The company continues to cite macroeconomic headwinds. In recent reporting and investor communications, officials reported that new single-family construction is up by low-single digits, while the repair and remodel market is down by mid to high single digits. According to the company, multi-family and Canadian markets are down by more than 25%.
Results for the three and six months ended June 29, 2024, showed net revenues from continuing operations of $986 million, a decrease of 12.4% in the second quarter, driven by a 12% core revenue decline. The company reported a 12% lower volume/mix due to “weak macro-economic conditions and a continued demand shift.”
In North America, net revenue came in at $710.6 million, a decline of $106.5 million year over year, or 13.0%. The change was driven by a 13% decline in core revenue due to a 13% lower volume/mix, “related to weakened market demand and a demand shift towards lower priced products,” the company reported.
“We continue to make strides in our transformation journey, positioning Jeld-Wen for improved performance,” said Christensen. “In the second quarter, even as market demand weakened further, we made notable progress in streamlining our operations. I am proud of how our associates stayed focused on meeting our goals and diligently implementing the necessary foundational changes.”
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