Largest Private Employer in Clarion closing (Carlisle, Bradford: best towns, mattress, mobile home)

[bethany12]

(http://www.punxsutawneyspirit.com/content/category/5/19/ - broken link)Owens-Illinois to close Clarion plant

Written by Matthew Steffy
Friday, 29 January 2010
CLARION — The region was dealt another industrial blow this week, as Owens-Illinois (O-I) corporate headquarters announced the pending closure of the glass plant in Clarion. More than 400 people will lose their jobs when the plant closes in July.

The announcement comes more than 14 months after two manufactured-housing plants closed in the Clarion area, and six months since the Trail King factory was shut down in Brookville.

Owens-Illinois Inc. said Wednesday it will close its Clarion glass container plant July 1, according to a release.

In the release, Miguel Escobar, president of O-I North America, cited the loss of volume associated with supply agreements for some customer locations as driving the decision to close the plant, which is one of the company’s highest cost plants in North America, the release said.

“In 2009, we renegotiated many customer and supplier contracts that were set to expire at the end of 2009,” Escobar said. “It was critical that the terms of all new contracts meet our financial and strategic goals. We were successful on many fronts, but not all. As a result, we have experienced a volume loss that impacts our North American operations.”

Stephanie Johnston, O-I corporate press secretary, said the corporation was able to improve profit margins during the negotiations, but, as Escobar said, lost some product volume.

At that point, Johnston said the company had to evaluate each plant in North America, and determine which were the least suited to continue in operation.

“Unfortunately, the Clarion plant has some of the highest cost of operation,” she said. “That had a lot to do with the age of the plant.”

Johnston said the Clarion plant has been in operation since 1905, which placed some limitations on lowering costs.

“The plant was not able to operate as efficiently or effectively as some of our other North American plants,” she said.

Customers served by the Clarion plant will be served by other O-I plants in the future.

“While we regret the impact this has on our Clarion employees, it is imperative that we take such actions to ensure the long-term health of the company,” Escobar said.

The plant employs about 420 people. It employed 537 in early 1994. Since 1995, it has employed about 400 people.

According to Johnston, the building and the property will be sold, and the equipment, which is specially suited for O-I glass manufacturing operations, will be moved to other plants.

O-I’s operations in the tri-county area will include two glass factories and a machine shop in the Brockway area. In May, those operations employed 550 workers.

When Owens-Illinois merged with Brockway Inc., formerly Brockway Glass, in the late 1980s, operations also included a mould shop (which was sold but is still in operation) and a plastics closure division in Brookville, which is no longer part of O-I’s operations, the release said.

In 1994, total employment by O-I, including the Clarion plant, was nearly 2,100 workers.

According to the release, the company will offer support services for all of the employees. Company and union representatives will meet soon to discuss details.

[North Beach Person]

I worked both there and at the Brookville closure plant. When I was in Clarion in the mid to late 70s there were well over 1000 employees. One of the reasons I left was because of the constant layoffs and even then the place was always on the chopping block for shutdown.
So:
C&K Coal-gone
REM Coal-gone
Glacial Minerals-gone
LEF&C RR-gone
The mobile home plants-gone
The bathtub plants-gone
Amos Dolby-gone
Knox Glass-gone
Conrail-gone
Is the pallet plant on Clarion River Hill towards Shippenville still open?

[North Beach Person]

I forgot the Sealey Mattress plant-gone.

[bethany12]

In the near future, the only employers left in PA will be the government, retail, restaurants, and non-profits. And the non-profits won't last long since the local and state governments are going after them for revenue.

[clarionboy]

in reponse to North Beach Person:
I agree with some of what you say about the closing, but the bathtub plant? Clarion Bathware is still strong as far as I know.
What chance did coal compays have when the coal was gone? C&K is now RFI and still have some employed. And the K in C&K now is in the natural gas businees and have a healty company employing many people. Not all the housing plants are gone, but they are in a slowdown.
Clarion Laminates and Clarion Boards (Clarion Industries) seem to be doing well and was a nice addition to the area. Lets not bad mouth the area to bad, a lot of good people running business are stilll here doing everything they can to make Clarion survives.

[North Beach Person]

Not bad mouthing, just pointing out that since the early 80s the industrial base in the area has evaporated.
The coal isn't gone, the market changed. Low sulphur coal from out West became the preferred product. I don't know if you were there at the time but C&K Coal shut down operations almost overnight, as did the others.
Yes, there are a lot of very hard working business people left in the area but let's face it, they aren't matching the wages the departed businesses paid.
That powers the be in the area (I'm going over to Dubois and up to Bradford with this and you can expand it over to Tioga County if you like) made a decision nearly 30 years ago to try to create a tourist industry, which always was there anyway, and not try to replace the manufacturing jobs.
In just the last several years Jefferson County/Brookville has turned down a Budweiser bottling plant, a Wal-Mart distribution center, and a Cabela's outlet (that is down near Carlisle now).
Rexam (old O-I closure division) in Brookville is on the chopping block according to friends who work there. Beverage Aire in Brookville just had a round of layoffs, one of the first in it's history.
The previously mentioned Trail King closure, Miller Welding which had a couple hundred people a couple years ago was down to twenty at the end of 2009.
That's not bad mouthing, that's just fact.

[clarionboy]

are you sure the Cabelas that your think of wasn't the one in Jefferson county Colorado that got turned down? the wal-mart dist center, there is one in Clearfield county.
Maybe bad mouthing was not the correct term, but lets show the positive of the area, The University is a great employer of many, the hospital is strong and growing, Clarion Boards, New Era housing just got word that they are not closing and going to be in operation after a Chapter11 scare.
There is a grea trickle down effect that hits this area later then most. People wanna buy in cans, we lose of glass plant. The blame list for that plant is long and wide. I have family that has reitred from that plant and spent the last 20 years with the closing rumor.
But you seem to be a man of facts so lets share the good, the groth in the area. Give people a reason to smile instead of feeling bad about living in probably one of the best towns in the country.

[North Beach Person]

The Cabela's I'm thinking of was being looked at to be placed in Jefferson County, PA.
It was sandbagged by some in the Brookville business community. As was the Wal-Mart distribution center that ended up in Clearfield. The Budweiser plant was stopped by the churches as it was to be placed in Pinecreek Township which is a "dry" jurisdiction.
Since you seem to have your "happy glasses" on please get in contact with your local officials who, from the news articles I've read (The Derrick, Clarion News, Courier Express/Tri-County Sunday), and some of whom I've talked to in the last few days,and share your optimism as they seem to be fairly devastated by the news.

What growth? The College taking over more and more property and removing it from the tax roles? The increase in CUP enrollment (as an alumni I get crap from them all the time) of students who leave after a couple years?
The growth, if you can call it that, of minimum wage jobs that haven't begun to replace the well paying jobs of the businesses I listed previously.
Or maybe the Clarion Area School District which was exploring a merger with Clarion-Limestone because neither system can support itself?

Something I just thought of, if the O-I property does get sold it will entail a massive brownfields clean-up. There will be some temporary jobs doing that.

One piece of good news: the new owners of Penn-Traffic said the Clarion Bi-Low will stay open for the next thirty days.

[JDD42]

I fear the area is in desperate need for all local officials, those who are elected and those who are the real leaders in the business and educational systems to begin to focus on long term revitalization and growth. Lots of quick-fix stuff, lots of tax for education/school exspenses etc. but few "leaders" seem to possess the intellectual skills and the moxie to put it together for a failing economy. The Brookings Institute published a paper a few years back that cited the reasons and the details of small towns in decay. The issues are dead-on to communities like Knox, Clarion, Brookvile, and others. Your governor poo-pooed the Brookings findings as being a bit harsh .... next time, have a look at where your biggest tax bite occurs. It's school taxes ...then go read the Brookings report .... it will provide a jolt but few people would be willing to change. Oh well, that's why many competent folks are educated by the Pa schools and leave the small towns. It's not the "small" that's bad ...'tis bad leaders and bad management of schools and businesses I'm sorry to say. Clarion County has hit itself over the head again!!

[North Beach Person]

Clarionboy, more happy talk for you. Let's make these people clerks at the Sheetz (where Emerson's used to be, across from Clarion Ford).

Courier-Express/Tri-County - Clarion grapples with plant closing fallout (http://www.thecourierexpress.com/site/news.cfm?newsid=20408439&BRD=2758&PAG=461&dept_id= 572984&rfi=6 - broken link)

Courier-Express/Tri-County - Home - LV Headlines (http://www.thecourierexpress.com/site/news.asp?brd=2758&pag=460&dept_id=573064 - broken link)