[03/06/03]Fifty-seven workers at the Anderson-Tully Engineered Wood plant in Vicksburg have been laid off in what company officials are calling a new temporary reduction in force.

ATCO, one of Vicksburg’s largest employers, developed the new engineered wood plant near its main sawmill at Waltersville to manufacture the Capella line of hardwood flooring.

CEO Tony Parks indicated today, as with the last layoffs in 2002, the market is soft for the product.

The company announced it was planning to build the plant in 2000 at a cost of $22 million to $25 million.

The company employs about 500 people in its sawmills and the engineered wood division had about 215 employees in 2002.

After the plant started operation, ATCO announced two reductions in force in the spring of 2002, first laying off 68 people and then 50 more. At the time, officials said the reasons were to make modifications in the manufacturing process and because of market influences. Those who had been laid off were called back starting in May 2002.

“This reduction was necessary because product inventory levels are currently exceeding what is necessary to meet immediate sales requests,” the company said in a brief news release.

The news release continued by saying the people laid off will not be recalled until market conditions improve.

Anderson-Tully is 115 years old and was started to make wooden shipping crates for fruits and vegetables. The company headquarters is in Memphis, and the sawmills and other operations are in Vicksburg. In addition to its manufacturing operation, ATCO owns large tracts of timberland along the Mississippi River to produce much of the hardwood timber it uses to produce high-quality lumber in addition to the engineered wood products.