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| Pelco closes down access control development factory in Indianapolis |
Pelco President and CEO Dean Meyer stated that: "As the general economic outlook continues to worsen and as forecasts call for a prolonged challenge throughout 2009, we as a company are forced to continually adapt to market demands. In response, we have initiated the necessary planning to exit the electronic access control (EAC) business with our Intelli-M product line. This decision requires that we explore the options to sell or spin-off the Intelli-M EAC business, as well as to close the EAC business in its entirety."
Management further noted that these options are being explored, and that regardless, the company will be closing the Pelco Indianapolis facility which primarily houses the resources for its access control development along with elements of general product support and training.
Meyer added that: "As we have indicated on numerous occasions, we are forced to monitor the market and be prepared to make difficult decisions swiftly in response to whatever challenges we are presented. This is another such decision but one that is necessary for us to maintain focus on efforts that are expected to best help Pelco weather the storm."
According to management, employees impacted by this decision have been informed, and those placed on layoff status will be offered severance, outplacement and counselling services. Likewise, Pelco will provide additional information to its customers on future plans for product support, warranty, repairs, etc., within the next 30 days.
"I would like to thank all of the employees in Indianapolis as well as those throughout the company who have supported our Intelli-M EAC business over this past year. Even though excellent progress has been made in the product offering and toward future releases, we must consider the realistic timing of future sales growth and the associated support costs between now and then. I ask for your support and understanding with this difficult decision," said Meyer.
