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March 13, 2009

Declining auto sales prompt Auburn layoffs

By The Mainebiz News Staff

Formed Fiber Technologies Inc., which manufactures automotive trunk carpets and liners at its Auburn plant, has laid off 50% of its work force because of declines in the auto industry.

The company has laid off 152 employees, eliminated the night shift, halted raises and stopped 401(k) contributions, the Sun Journal reported. Formed Fiber, whose biggest customer is Toyota, tried to prepare for an expected decline in automobile sales during the first quarter of 2009, going so far as to implement a financial restructuring at the end of 2008 to lower debt, but CEO Mark Bennett told the Sun Journal that sales were even worse than expected. The company's sales were off 47% for February, he said.

"Everybody's feeling the pain," Bennett told the paper. "We're trying to protect the business long-term so people have jobs to come back to. Every company is trying to figure out ways to survive."

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