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Iron City Brewing to move production, lay off staff
Wednesday, January 14, 2009

Iron City Brewing said today it will temporarily move production of Iron City and IC Light cans outside Pittsburgh while it fixes its balky canning line, resulting in the layoff of 25 percent or more of its work force.

Can production will end March 1. The beer maker hopes to finalize production arrangements in the next few weeks with a brewery that will produce the canned beer under contract while Iron City decides whether to fix or replace the canning line. Iron City will continue producing bottles and kegs at the Lawrenceville plant.

"We're still committed to these products. We're still committed to Pittsburgh," said President Tim Hickman.

The beer in the cans will be the same and cost the same as if it was produced in Pittsburgh, he said.

"It's our recipe. It's our brew master. It's the same quality product," Mr. Hickman said at a press conference."

He estimated that 25 to 30 of the brewery's 81 workers will be laid off when can production is halted.

"Our goal is to have an improved, more efficient can line within a 30- to 90-day time frame," he said.

Mr. Hickman said the canning line has caused serious production problems over the last 60 days, issues that weren't anticipated when he took over following the brewery's emergence from bankruptcy in 2007. Despite the issues, sales of Iron City have increased 20 percent over year-ago levels and sales of Augustiner Lager have more than tripled, he said.

"We've done all the things we've need to do to become cost competitive," Mr. Hickman said.

Len Boselovic can be reached at lboselovic@post-gazette.com or 412-263-1941.

First published on January 14, 2009 at 3:15 pm