Eley Corp., a small, family-owned manufacturer of hoses and hose reels, will move its production from Lincoln to China next month, costing seven people their jobs.

The seven production employees who will be let go make up half the work force of the small company.

"It's seven jobs or all of them," said Mark Eley, company president. Eley said the workers will receive a severance package.

Sales and administrative functions of the business will remain in Lincoln.

Eley and his brothers Warren and Craig own the company, which they started with their father John in Orchard in 1990.

The company moved to a 50,000-square-foot building at 1421 Kingbird Road, near the Lincoln Airport, in 1997.

Eley said the economy was one factor in the decision to move production overseas, but there are "a whole range of things," he said, without elaborating.

The company's products are sold under the name Rapid Reel and include garden hoses and reels, air hoses and reels, and reels for industrial power washers.

The industrial products are sold through more than 500 independent dealers, according to the company's Web site, while the other products are sold both factory-direct and through independent retailers, such as garden centers, hardware stores and power equipment dealers.

Manta.com, a Web site that provides business information on small and mid-sized businesses, estimates Eley Corp. has annual revenue between $2.5 and $5 million.

Reach Matt Olberding at 473-2647 or molberding@journalstar.com.

On the Web

Get more information on Eley Corp. at www.rapidreel.com.