Long-time local computer manufacturer Beehive International has announced a restructuring of its operations that would move most of its production to West Germany and eliminate 165 local jobs.
Beehive will retain 80 employees to conduct research, development, marketing and customer service operations at its plant located in the International Center, 4910 Amelia Earhart Dr., a spokeswoman said.The company has signed an agreement with Standard Elektrik Lorenz AG in West Germany to take on manufacturing of Beehive's IBM 3270 compatible terminals. Beehive will keep its local manufacturing facility in place for producing pilot and prototype models and to possibly reassume manufacturing in the future, said Sally Jenkins, Beehive corporate communications manager.
In a prepared statement, Beehive president Richard K. Hodge said the agreement with SEL will allow the company to meet increasing demands for its product and become more cost efficient and responsive to customers.
"The restructuring of operations is a key step in our plan for financial recovery since the company emerged from Chapter 11 in 1985," he said.
The 20-year-old Utah firm has yet to post a profit since filing for bankruptcy in 1984, but its performance has steadily improved, Jenkins added. Last year the company had a $6.6 million loss on $17 million in revenues, and for the quarter ending April 1, 1988, experienced a $2 million loss on $8.1 million in sales.
Hodges said Beehive is developing a plan with creditors to restructure financial obligations in order to assist the company during the manufacturing transition.