Coleco Industries Inc. has resumed full production of Cabbage...

By STEVE GEIMANN, UPI Business Writer

SCHENECTADY, N.Y. -- Coleco Industries Inc. has resumed full production of Cabbage Patch dolls and Adam home computers at two upstate New York plants after a post-holiday inventory in January, a top executive said Wednesday.

Clark Miller, vice president for employee relations, said about 5,000 workers are back at the Montgomery and Fulton county plants -- and a second shift was added to make the troubled home computers and the popular wrinkle-faced dolls.


'Volume levels in both of those products will rise significantly in 1984,' Miller told a business meeting in Schenectady.

More workers will be hired soon, although Miller did not provide details.

Miller also reported that Coleco and Renssealer Polytechnic Institute in Troy have established a working agreement in which RPI, at Coleco's request, will help train its managers and will review some assembly line operations.

Coleco made 95,000 Adam home computers in 1983 -- short of the 140,000 predicted by corporate officials during a media tour in October, and well below the 500,000 forecast when the computer was introduced early in the year.

Difficulities with an instruction manual, which did not warn customers of problems if tape disks were left on top of terminals, contributed to the shortfall, Miller said.


Coleco's Amsterdam and Mayfield plants are working at 'high volume' production, although neither Miller nor spokesman Brabara Wruck would disclose a figure. 'We can't keep them in inventory,' he said.

Miller said Coleco made 3 million Cabbage Patch Kids in 1983, and produced another 500,000 in January to keep up with demand which retailers say has not abated. The dolls became the hottest-selling item during the Christmas season.

Miller made his comments during a brief talk on Coleco before 400 business executives from 11 counties surrounding Albany. Miller did not discuss Coleco's problems in getting the Adam prepared for the home market.

Instead, he predicted the company's future sales will be led by Adam and ColecoVision. Coleco had sales of $510 million in 1982, and 1983 sales 'will reflect further meaningful growth,' Miller said.

Coleco has said it suffered a loss in the fourth quarter resulting from its inability to meet early production goals for the Adam, but said 1983 and the first quarter of 1984 will be profitable.

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