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BOYNE CITY - LexaMar Corporation located in Boyne City's industrial park laid off about 95 employees just before the Labor Day weekend.

The action is a "permanent layoff" and is "a result of current automotive market conditions and a corresponding reduction in customer production volumes," said a spokesperson for LexaMar's parent company, Magna International of America Inc. The layoffs affect both salaried and hourly employees.

LexaMar produces decorative moldings for vehicle exteriors. It is one of the largest businesses in the industrial park, employing approximately 400 employees.

Boyne City manager Michael Cain said he has met with LexaMar management and with Northern Lakes Economic Alliance to discuss LexaMar's situation.

"Right now we're focused on what we can do to make sure they (LexaMar) stay here, stay viable and keep their doors open and employ as many people as possible," Cain said.

That is one of the reasons the city will not cancel the tax abatements it awarded to LexaMar. Tax abatements are a reduction in the company's property taxes paid to the city. Revenue of more than $20,000 a year is lost to the city because of the tax abatements to LexaMar.

But Cain said to revoke the abatements or recapture taxes at this juncture would be "kicking them when they're down."

A prepared statement by Magna International's communications director, Tracy Fuerst, said that the company "intends to do everything possible to help place employees in other Magna family facilities and assist with this transition."

On Aug. 18, Magna International Inc.'s Decoma International unit of which LexaMar is a part, announced plans for a restructuring of LexaMar to its employees. Restructuring is currently under discussion by the company with input from employees, customers, suppliers and management "to make the plant a viable business going forward," said Fuerst.

Magna International employs approximately 83,000 employees in 241 production and 62 product development and engineering centers in 23 countries, according to its Web site.

The company designs, develops and manufactures automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles. It sells its products primarily to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa.

B. J. Hetler may be contacted at 231-622-2645 or at citizen@voyager.net.