The Daily Southerner, Tarboro, NC - Farmtrac tries to regroup
Farmtrac tries to regroup
Workers put on hold
Bob Benedetti
Staff Writer
It was a dark, damp day outside Thursday, one whose chill cut to the bone. Inside Farmtrac corporate headquarters on 111 Fairview St. in Tarboro some of that same chill existed, as leadership told employees Thursday that operations were temporarily being shut down.
Vice President and Chief Financial Officer of Farmtrac North America Alton Cobb Jr. confirmed that employees were being sent home for about two to three weeks "while we get some clarity" on the outcome of approximately 180 workers employed by the tractor production firm.
With the company for more than two decades, Cobb described the closing as a needed step to complete negotiations with "another firm or firms."
Cobb stated that Farmtrac officials are "having conversations" with undisclosed prospective firms in an effort to "reorganize and restructure" due to the "lean season" the company has experienced.
When asked whether the organization had its sights set on items such as buyout packages or relocation. Cobb said "it's too early" in the process to discuss possible workforce separations and was adamant that "relocation makes no logical or financial sense."
"These things go in cycles," explained Farmtrac North America Head of Marketing Shenu Agarwal, referring to periodic mergers and acquisitions between corporations, sometimes even competitors in the same industry.
In a matter-of-fact voice, Cobb gave a personal anecdotal of Agarwal痴 statement, "We've had three ownerships since I致e been here."
Agarwal and Cobb figure that most of Farmtrac's staff has a 10-plus year tenure, and have already been part of previous workforce changes.
Even if workers are familiar with the ebb and flow of financial and transactional components of the business, the timing may have caught a few off guard. When asked how long employees were aware of shutdown possibilities, Agarwal and Cobb gave no reply.
Neither did workers who were asked on the company premises.
Cobb confirmed that workers are eligible apply for unemployment benefits at the local Employment Security Commission. He also stated that although no further production will take place until further notice, the shipping, support and service components of Farmtrac will continue to operate all on a voluntary basis.
"We intend to continue serving our customers," Agarwal said. "And because of the commitment of our employees, we'll be able to do it."
Approximately 40 employees have expressed willingness to voluntarily give a hand.
"They show they're willing to do what it takes," said Agarwal.
Originated by William "Bill" Long exactly 60 years ago under the name Long Manufacturing, the Tarboro-based farm equipment maker established contracts with numerous major companies, including Ford, by the mid 1950s and opened satellite stores in Iowa, Pennsylvania, Tennessee, Georgia and Washington state. It began importing tractors from Brasov, Romania-based Uzina Tractorul Brasov (UTB) and filed for bankruptcy in 1985, but returned by 1987 after reorganization. In 1998, Long Agribusiness was purchased by the Escorts Group of Faridabad, India; a leading engineering conglomerate that focuses on agri-machinery, construction and material handling equipment, railway equipment and auto components.
The Long name was dropped in favor of the Farmtrac brand.
In an undated article from Farmtrac's Web site, it states that $10 million of upgrades and expansions of the manufacturing facilities since mid-2004 is an effort to triple its output capacity. Other tractor companies that have production facilities on U.S. soil include John Deere, New Holland, AGCO and Kubota.
On Jan. 1, 2006, a posting on AllBusiness.com mentioned Springdale, Ark.-based Montana Tractors had "recently announced the purchase of 80 acres of land in Tarboro, which will be used to increase strategic distribution of Montana's products" as part of a plan to expand its dealer network.
The site continued to explain that Montana Tractors made "another move" in the company's long-range growth strategy: a "letter of intent to purchase a minority stake in Beaver Creek Holdings, LLC, which holds 51 percent of Farmtrac stock." Montana Tractors' three owners J.B. Hunt, Charlie Goforth and Dan Downing said the purchase fits into their plans "for the company to be one of the top five tractor suppliers in the U.S. ... by the year 2010."
A news release on Farmtrac.com dated April 20, 2006, discussed the Montana Tractor effort, stating that the Farmtrac board of directors has "turned down a share acquisition bid by Montana Tractors. The Escorts Group and Farmtrac are here for the long haul."
In a Dec. 10, 2007 Web site posting from Ytmag.com, an antique tractor firm called Yesterday's Tractor Company, it mentions a link between Montana and Farmtrac. "Today, Montana tractors owns stock in Farmtrac/Escorts. Farmtrac is in control but Montana is in the picture."
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