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Buffalo China's Parent May Close Local Plant

By Howard Riedel

Buffalo, NY – Buffalo may be losing 450 jobs and more than 100 years of history. Buffalo China's factory and warehouse on Bailey Avenue may be shut down by parent company Oneida Limited as part of a company-wide cost cutting.

Buffalo China produces tableware for restaurants.

Oneida's board of directors has approved the creation of a plan to shut down Buffalo China, but has not decided yet on implementing it.

"Our (Oneida's) results continue to be affected by a slow general economy," said Peter J. Kallet, Oneida Chairman and Chief Executive Officer, in a written statement. "The decline in consumer confidence has lowered retail sales not only of our products, but also in the overall consumer tabletop industry."

The possible closing of Buffalo China is just one of several moves the company is considering, including the closing of plants in Mexico, China and Italy. Oneida is reporting a net loss of $7.1 million for the first six months of 2003.

"In response to these challenging conditions we are aggressively reducing expenses and streamlining our operations worldwide in order to return the company to profitability as quickly as possible," Kallet said.