P&g To Close Hatboro Plant, Trim 365 Jobs Within 2 Years

Posted: May 20, 1994

Procter & Gamble Co. yesterday said it would close its Hatboro health- and beauty-care-products plant by May 1996, costing 365 workers their jobs.

The plant, which is on Warminster Road, manufacturers Clearasil, Oil of Olay and Bain de Soleil skin products, Fixodent denture products and some Vicks lines.

The employees, who are not represented by unions, will be offered early retirement, transfers or severance packages. Severance will range from four months' to a year's salary and a year of medical- and life-insurance benefits, the company said.

In addition to the Hatboro plant, the Cincinnati consumer-products company said it would also close a pharmaceuticals plant in Puerto Rico in 1996, and a cough-drop factory in Sweden by December. In all, 1,100 workers will lose their jobs.

The company also said it would shut some production lines at four other facilities, but that doing so would have little effect on workers because they are expected to transfer to other lines at the plants.

The Hatboro plant, formerly known as Richardson Vicks Inc., was acquired by Procter & Gamble in 1986.

P&G chairman and chief executive Edwin L. Artzt said in a statement: "We regret the need to make these difficult decisions affecting employees and communities we care about, but P&G has a strong tradition of treating its people well, and we are committed to helping those affected move through their transition successfully."

The cost of the closings was part of a $1.5 billion after-tax reserve P&G set aside in July. Procter & Gamble said the consolidations would help it operate more efficiently.

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