RBC Closing Nice Bearing in Kulpsville

RBC Bearings Inc. (RBC, USA, NASDAQ: ROLL) is closing Nice Ball Bearings, located in Kulpsville, Pennsylvania. Workers there are represented by United Steelworkers union Local 6816; the union said approximately 45 workers will be affected by the closing. RBC spokesperson told that the company would have "no comment" on the plant closing, pending the release of quarterly financial results. Nice manufactures a full line of precision ground, semi-ground and unground bearings and bearing assemblies. The company focuses on special and standard inch dimension ball bearings for automotive, industrial, lawn equipment, conveyor, material handling, medical and semiconductor equipment, bicycles, automotive strut and steering column applications. Nice bearings have been sold exclusively by SKF/MRC since RBC acquired Nice Ball Bearing Division from SKF in 1997. SKF reportedly has a ten year exclusive distributorship agreement, through 2007. Competition from low-price imported bearings, however, has been taking its toll on SKF's ability to market Nice bearings. As one distributor noted, "I think most customers see Nice as just a more expensive domestic alternative. Imports offer more crossover into the Nice line, and competing on price is not where it's at." Production and employment at the Nice plant has been slowly eroding, as orders from SKF have slowed. Recently, RBC began to explore the possibility of selling the entire 16-acre operation, then leasing back half of the 132,000 square foot building. RBC's Nice overhead would be reduced, it would be saved from an expensive equipment-moving exercise, but would maintain its proximity to SKF's operations in Kulpsville. The Gelcor Real Estate detailed listing is here. Note the asking price of $5 million. A Steelworkers spokesman told that RBC was surprised when it listed the property, offers coming in were, "far, far higher than RBC ever dreamed." But a high selling price would translate to a high leaseback, and the best offers came from buyers who wanted the entire building, not just half. Taking the combination of factors into consideration, most said they understand RBC probably had no other viable option than to close and sell the plant. RBC has now told workers the Nice plant will close and the facility is under contract to be sold. A Steelworkers spokesman told the union is currently in severance negotiations with RBC. With fewer than 50 workers affected, he noted RBC was not required to file a WARN Act notification, which might have hampered its ability to act on the best sale offers. Although the company declined to comment, multiple sources told that Nice bearing production is being moved to RBC facilities in Bishopville and/or Hartsville, South Carolina. They noted the South Carolina facilities are "perfect" for producing Nice bearings, and a Hartsville worker said the plant has been setting up for both Nice and Tyson finish, assembly and warehousing operations. Kulpsville has been the scene of some labor unrest through the years, and workers there have repeatedly told they never had a good working relationship with RBC after working for SKF. In 2003-2004, union workers at Nice were on a contentious four-month strike over wages and benefits. Nice Ball Bearing was founded in 1914 by William Nice as a spinoff of his Pressed Steel Manufacturing Company. Later acquired by SKF, Nice became a division of RBC in 1997; SKF/MRC retained exclusive rights to distribute the product line. Nice is also part of organized labor history. In 1941, Nice workers founded the U.S. bearing industry's first dedicated union by formally organizing the Anti-Friction Bearing Workers Union. In 1962, the AFBWU merged with the United Steelworkers of America to become USWA Local 6326. In 1999, it and several small locals were merged to become USWA Amalgamated Local 6816, Unit 12.