Arvato Digital Services to close distribution center in Duncan
01/09/2014 12:25 AM
01/09/2014 12:32 AM
A local employer will shutter its facility in Duncan this year, eliminating about 130 full-time jobs. Arvato Digital Services, a division of the Germany-based mass media conglomerate Bertelsmann AG, said it will phase out its 300,000-square-foot distribution center at 112 Hidden Lake Circle. The shutdown will be complete by the end of June, according to the company. Tom Goben, the company's vice president of operations, said Arvato's decided to close the center because it determined that its business levels were not sufficient to support three North American sites offering the same service. "We have multiple locations (in the United States)," Goben said. "We took a look at our supply chain and saw redundancy and higher costs. With our current operations, it's just not feasible for us. Based on our analysis, we made the decision to close the Duncan facility." The company's customers will be serviced by Arvato facilities in Lousville, Ky., and Pleasant Prairie, Wis., Goben said Positions impacted by the Duncan site's closure include distribution and logistics, operations supervision and management, administrative and account services, the company said. Goben said the company is fully adhering to the requirements of the WARN Act. Employees will be offered severance packages, continuation of benefits and outplacement services. Arvato's facility opened in the late 1980s as part of Bertelsmann Music Group's local operation. In 2003, the facility began to transition from an automated shipping center for DVDs and CDs under the BMG banner to Arvato Digital Services. "Arvato would like to thank the local community for the great support and excellent team members that have been part of our success over the past 26 years," Goben said. "We are committed to the best possible interests of our employees and will provide opportunities for severance and benefit continuation as well as guidance and assistance in job search and outplacement services." Arvato said it is a global outsourcing service provider with more than 63,000 employees worldwide. The company said it produces tailor-made solutions for a wide variety of business processes along integrated service chains for business customers from all over the world. Those solutions cover all services related to the generation and distribution of printed goods and digital storage media, as well as data management, customer care, CRM services, supply chain management, digital distribution, financial services, qualified and customized IT services, the company said.
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