Intermet to close Campbell Co. foundry

8:15 p.m.

On the day after Christmas, nearly 200 people will lose their jobs at Archer Creek Foundry in Campbell County.

The foundry notified the county and the state on Wednesday that it will lay off 192 people on Dec. 26. “The entire Archer Creek Plant will be closed and the layoffs are expected to be permanent,” said the notice.

The foundry’s parent company, Intermet Corporation, filed for bankruptcy last year. In September a plan to sell the foundry to another operator failed, and the company is liquidating its assets.

“I think that, unfortunately, the closure of the foundry had been looming for a number of years,” said Campbell County Administrator David Laurrell. “While it certainly is unfortunate, particularly for the families that are involved and the workers that are involved, I can’t say that it was unexpected.”

Officials of Intermet and the foundry would not comment on the announcement.

Archer Creek Foundry has operated for more than 30 years on Mt. Athos Road and at one time had nearly 700 employees. It makes heavy iron castings for the automobile industry. Intermet’s Web site said the plant has capacity to cast 122,000 tons of iron yearly.

It is part of Intermet’s Lynchburg Foundry subsidiary — which also runs the New River Foundry in Radford, which is closing Dec. 12. The original Lynchburg Foundry plant on the Lynchburg riverfront closed in 1993.

Intermet’s struggles have paralleled those of the automobile industry. In August 2008 Intermet filed for bankruptcy because low vehicle sales — and scaled-back auto manufacturing — caused cash-flow issues and revenue losses.

The foundry has had several layoffs since then, although most were small enough that they did not require reporting to the state.

This summer there was some hope for the foundry’s future. Kentucky-based Revstone Industries received approval from a bankruptcy judge to buy Archer Creek Foundry and other Intermet facilities.

Campbell County Economic Development Director Mike Davidson said in August that he had heard of some foundry employees receiving letters stating they would have jobs with Revstone once the sale closed.

“I think they were getting ready to make the announcement in September that the other company had bought it,” Davidson said Wednesday.

The sale fell through in September, however. Davidson said that he heard that Revstone was not able to raise enough capital to close the sale.

Bankruptcy documents show that the bankruptcy court set up a liquidation trust to sell off all of Intermet’s assets.

Walter Fore, who for years was president of the Central Virginia Labor Board, said that to his knowledge, this is the first time the Archer Creek plant has announced it would lay off all employees and close.

Laurrell said that the county’s unemployment rate, 6.6 in September, could rise slightly because of the lost foundry jobs. He said the county will work with the Virginia Employment Commission and other agencies to reach out to workers.

“I think clearly the most important thing is to help the folks who work out there … find other opportunities,” he said. “We will actively participate in helping to market the property if (Intermet) would like us to help in some way.”

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3:08 p.m.

Intermet’s layoff of 192 employees at the Archer Creek Foundry will be coupled with the closure of the facility, Campbell County administrator David Laurrell said this afternoon.

Intermet notified the county of its plans today, Laurrell said.

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10:25 a.m.

Intermet’s Archer Creek Foundry in Campbell County will lay off 192 employees, according a state database of mass layoffs.

Intermet makes heavy iron castings for the automobile industry. In 2008, it filed for bankruptcy as automobile sales plunged.

In the summer, a bankruptcy judge approved a motion for Revstone Industries, a Kentucky company, to buy the Archer Creek Foundry and other Intermet facilities.

That sale fell through, however, and in September the bankruptcy court ordered a liquidation of all of Intermet’s assets, bankruptcy documents show.

On Oct. 15, the related New River Foundry in Radford announced it would close.