Houston Chronicle

Sugar Land cookware company cuts over 100 jobs, blaming tariffs

- By Erin Douglas STAFF WRITER

Tramontina USA Inc., a manufactur­er of metal kitchen cookware, will lay off 108 workers in September, according to a Texas Workforce Commission notice.

The Sugar Land-based American subsidiary of a Brazilian company will cease its U.S. manufactur­ing operations due to increased costs as a result of tariffs on components such as aluminum, steel studs and glass lids. The company also said the cost of raw materials, labor and freight in the U.S. has increased in recent years.

While Tramontina will not close its Sugar Land facility, which is primarily used for assembly and packaging of cookware products, it will close its manufactur­ing plant in Manitowoc, Wis., which will result in fewer products routed to Sugar Land, so fewer workers will be necessary.

The Wisconsin plant

closure and layoffs in Texas are the latest examples of companies responding to ongoing trade negotiatio­ns between China and the U.S. that have increased prices for raw materials and hurt profits for domestic manufactur­ers.

Nearly 40 percent of Texas businesses reported that they anticipate tariffs will hurt profits in the next two years, according to a recent Federal Reserve Bank of Dallas survey. Manufactur­ers are being hit particular­ly hard — more than a quarter reported in the survey that they had reduced capital spending plans as a result of the tariffs.

In a release, the company said cost increases caused its domestical­ly produced items to be less competitiv­e in the housewares market.

“This is an extremely difficult announceme­nt for both Tramontina U.S. Cookware and Tramontina USA, and we certainly recognize the impact on our employees and the Manitowoc and Sugar Land communitie­s,” said Marcelo Borges, Tramontina USA’s president and chief executive, said in the statement.

In Wisconsin, the company will eliminate 145 jobs as it shutters manufactur­ing operations, where it made aluminum cookware vessels since 2005. Manufactur­ing operations will move to Tramontina Group’s 10 plants in Brazil.

Employees affected by the layoffs in Sugar Land are eligible to receive a retention bonus if they remain at the facility until the beginning of September.

Approximat­ely 250 employees will remain in the Sugar Land location, Tramontina spokespers­on Donna Parke said.

The U.S. headquarte­rs in Sugar Land is one of the largest channels of product distributi­on for the company.

 ?? Chronicle file photo ?? Tramontina assembly worker Albertina Del Valle assembles cooking pans in Sugar Land.
Chronicle file photo Tramontina assembly worker Albertina Del Valle assembles cooking pans in Sugar Land.

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