Etch A Sketch Packs Its Bags For China
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The Etch A Sketch, a toy cherished by generations of American children over the last 40 years, is headed overseas.Ohio Art Co. will move production of the toy to China from the northwest Ohio city of Bryan, where Etch A Sketch has been made since it was introduced in 1960, the company announced Tuesday. The company earlier this month said that increasing labor and production costs might force the move, which wasn't expected to be decided on until January. Assembly line workers will stop turning out the toys on Dec. 22. Nearly all of the company's other toys -- creativity-based playthings and the Betty Spaghetty doll introduced in 1998 -- and the pocket- and travel- size versions of Etch A Sketch already are made in China. Ohio Art has been struggling financially during the past two years. It posted losses in the first two quarters of 2000. Its third-quarter earnings showed a 27 percent drop in profit and a 20 percent drop in sales from the same period a year ago. Etch A Sketch sales, though, remain strong as the holiday season gets under way. More than 100 million have been sold worldwide since 1960. The toy lets kids scrawl artwork or messages, then erase with a quick shake. The classic Etch A Sketch is a red plastic box the size of a standard-size piece of paper. But the toy now comes in all colors and shapes, including a key chain version. Moving production would affect about 30 workers in Bryan, but the loss would be a symbolic blow to the city of 9,000 people, about 60 miles west of Toledo. The toy is such a fixture that an oversized version is included in the holiday decorations on the town square. The decision to move the toy was difficult because of the company's strongly felt presence in Bryan, said William Killgallon, chairman and chief executive officer of Ohio Art. The move is strategic, Killgallon said, and will allow the company to stay competitive. ``We remain very committed to northwest Ohio and to the local Bryan community, as we have been for the past 92 years,'' he said. Ohio Art plans to keep its headquarters and lithography production in Bryan, along with a warehouse operation. SOURCE: Associated Press[Posted 12/13/2000]
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