Hexcel to Phase Out Anaheim Facility, Lay Off 156 Workers

Hexcel Inc., a maker of reinforced fabrics for the aircraft and automotive industries, said Tuesday that it will gradually close its Anaheim plant over the next two years and lay off 156 workers.

Hexcel said it will combine its U.S. Materials facility in Anaheim, which makes composites and reinforced fabrics for aircraft and defense industries, into three other plants in California and plants in Arizona and Texas by the end of 1997.

The closure is contingent on the Pleasanton company’s ability to complete its previously announced acquisition of the composites business of Swiss chemical and pharmaceutical giant Ciba-Geigy Ltd. Regulators must approve the transaction, and shareholders must approve certain sale matters.

Hexcel executives told workers Tuesday in Anaheim about the company’s plans to phase out the plant.

“We had to make some decisions about going forward because of our excess capacity,” said Stephen Forsyth, a Hexcel vice president. “We’re giving employees plenty of notice and letting them know the programs that will be available to help them. This isn’t a sudden closure.”

The closure is part of ongoing restructuring efforts at both Hexcel and the Ciba Composites division, Hexcel said.

Under the merger, Hexcel will pay $25 million in cash, give Ciba-Geigy 49.9% of its stock and pay $45 million in Ciba Composites debts. Ciba-Geigy will remain a passive investor for now, Forsyth said.

John J. Lee, Hexcel’s chief executive, will become chairman as well, and Juergen Habermeier, Ciba Composites president, will become Hexcel’s president and chief operating officer.