Armor supplier to lay off about 234 employees

Ceradyne, the Costa Mesa-based ceramics manufacturer that provides body armor and other equipment to the U.S. Army, has announced plans to lay off more than 200 employees due to a slowdown in business.

The company, which operates out of corporate offices on Red Hill Avenue, announced this week it would reduce its workforce by 234 employees, most of them temporary workers or others hired in the last 12 months. Ceradyne submitted a proposal this month for a five-year, $1.2-billion supply of body armor, but doesn’t expect orders to come through for a few months.

In the meantime, the company is ready to rehire its workers if the Army demands it, according to David Reed, Ceradyne’s president of North American operations.

Reed said the Army is looking for new, improved products.

“We submitted a bid, or proposal, to them along with some of our competitors,” Reed said,

Whether the jobs will return depends on the Army’s decision, which follows its five months of reviewing bids, he said.

“We’ve been operating at a very high level for the last few years with the war effort,” Reed said. “It really depends on how fast the Army decides to deploy that product and whether Ceradyne wins.”

Reed said 122 of the layoffs occurred in Costa Mesa, with 64 temporary workers and 58 full-time workers released. Most of the people cut, he said, were hired specifically to make ceramic materials for body armor.

Ed Fawcett, the president of the Costa Mesa Chamber of Commerce, said he was disappointed to hear about manufacturing jobs being cut; in the past, Fawcett has often stressed the importance of industry for the city’s economic health. However, he added that in this case, the news could have a positive side.

“On one side, it’s a shame,” he said. “But on the other side, it’s nice we don’t need as much body armor.”

Reed, for his part, said he didn’t expect Ceradyne to stop providing equipment to soldiers any time soon, even if the next president announces an intention to withdraw troops.

“I think the idea that someone gets elected next year and we all pull out in three to five months is naive,” he said.

Ceradyne’s stock surrendered 24.2% of its value and closed at $35.75 Tuesday. It recovered slightly Wednesday and closed at $35.93.

MICHAEL MILLER may be reached at (714) 966-4617 or at michael.miller@latimes.com.