Orangeburg’s Husqvarna plant cutting 200-230 jobs

The job reductions are a corporate effort to improve efficiency and to lower costs as the company begins to exit its production of gas-powered, low-margin consumer products, primarily wheeled (ride-on mowers/tractors), and begin production of electric and battery-powered equipment.

The company also plans to consolidate its North America footprint in the Orangeburg plant, which will take over portions of the company’s hand-held production/assembly. The number of jobs arriving at the Orangeburg plant as part of the consolidation was not immediately released Tuesday.

“Our ambition to lead the industry transformation and to create sustainable value requires us to focus on our core areas: robotic mowers, battery-powered solutions, watering solutions and solutions for the professional market,” Husqvarna Group Vice President of Corporate Communications Fredrik Henriksson said. “Accelerating the shift from petrol to battery also means reducing investments in other segments. With this, we are driving the transition to sustainable solutions and a lower carbon footprint.”

“The shift from petrol-to-battery means that we have to continue to increase our organizational efficiency and make decisive structural changes and are accordingly right-sizing our manufacturing in Orangeburg,” Henriksson said. “In line with our strategy, we are also consolidating our manufacturing foot-print in North America into Orangeburg, who will take over parts of our hand-held production/assembly.”

Hand held-products include such items as chainsaws, Henriksson said.

“We are dedicated to give every level of support throughout the process to impacted employees, guaranteeing we do the utmost to support our employees affected by these changes,” he said.

According to the company’s second quarter report issued Tuesday, Husqvarna said it was also consolidating its global manufacturing footprint, with the discontinuing of the handheld production facility in Nashville, Arkansas.

The company says it electrification efforts aim to reduce the carbon footprint of the company by 35% by 2025.

The jobs lost Monday “caught some people by surprise” at the plant, according to county officials.

“It isn’t just Orangeburg,” Orangeburg County Development Commission Executive Director Merle Johnson said. “It is company-wide. Husqvarna is going through a right sizing.”

“I think the bigger issue is that the whole industry has seen about a 35% to 40% drop-off,” Johnson said. “I think it is because the economy is contracting and people may not go out there and buy a multi-thousand-dollar tractor at this point in time; maybe they are going to hold off on that purchase.”

Johnson said as of Monday night about 100 individuals of the 230 who were laid off have been through SC Works and have started the process of looking for another job.

Johnson said for those who have not begun the job search process, the OCDC will put on its Facebook page job placement and job search information.

“That is the conduit to make sure they get either unemployment or they get fully employed because there are other companies out there right now looking to hire people,” Johnson said.

Johnson said the right sizing and job loss did also include attrition and not filling open positions.

Orangeburg County Administrator Harold Young said “there should be some other economic development announcements coming in the future that should help ease the pain of the job loss. He also said there are a number of job fairs scheduled to be held at the Orangeburg County Library and Conference Center.

“I encourage everyone of those 230 people to be on the lookout through the county’s website and Facebook page to make sure you take advantage of the job fairs,” Young said.

Young said seasonal layoffs have been common at the plant over the years, but these seasonal layoffs are becoming less common.

He said as a result, the 230 job losses “caught some people by surprise.”

County economic development officials estimate the Old Elloree Road plant currently employs about 800.

The plant manufactures lawnmowers, chainsaws and other lawn and garden equipment.

Husqvarna is the county’s largest manufacturer. It has historically employed about 2,300 during its peak manufacturing season.

In other company news, on Tuesday, Husqvarna announced it had posted an 11% to $227 million rise in operating profit for the quarter ending June 30 helped by price hikes and lower costs and made further progress trimming its inventory.

The company is attempting to reduce high inventory levels it purposely built up toward the end of 2021 to cope with uncertain component supply.

“Given the continuing uncertain macroeconomic environment, our focus remains on further cost efficiency, improved cash flow and operational flexibility,” CEO Pavel Hajman said in an earnings statement.

The April-June quarter is typically Husqvarna’s strongest, as it does the bulk of its business in the run-up to the gardening season in its key markets of Europe and North America, which last year comprised 51% and 35% of group sales, respectively.

Direct operating cash flow improved in the quarter due to higher operating income, and changes in inventory and accounts receivable, Hajman said.

Husqvarna, once Roper Lawn Mower Co., moved to the area from Illinois in 1973. Husqvarna Group purchased the company in 2006.

The name change was part of a company spin-off of its outdoor products subsidiary, Husqvarna AB.