Vernay
delays closure of Plant 2
Vernay Laboratories has changed its schedule to close Plant 2, the remaining
facility on Dayton Street, slightly extending employment for the last
43 manufacturing workers who remain in Yellow Springs, Gregory Gearhardt,
vice president of the company’s North American operations, said
on Monday.
Vernay still plans
to eventually close Plant 2, but layoffs are not likely to begin until
November 2004, and the plant will probably remain open until February
2005. In the spring, company officials had said that the plant would be
closed by mid-2004.
“We’re
slowing the process down at this point,” Gearhardt said.
He attributed the
delay to a marketing study and an analysis of the costs to relocate the
plant’s operations, which the company is “wrapping up.”
The results of the
study, which are available but not ready to be released, will help Vernay
determine where the best market is for the medical manufacturing currently
in Plant 2, he said. The financial study will also show how much the move
will cost and when the company might be able to afford it.
Gearhardt said that
he expects the company’s management team at the end of this year
to recommend where Vernay should move the factory. From January to July
2004 the company will be in a project planning phase to decide the details
of relocating and restarting elsewhere.
Part of the reason
for the plant closing delay is that Vernay funneled some of its available
funds to new product development in injection molding at its Milledgeville,
Ga., facility, he said.
Vernay announced
the closure of its Dayton Street facilities in June 2002, saying both
plants were expected to be closed by the middle of 2003. Since the announcement
was initially made, however, those plans have changed numerous times.
Plant 3 closed six
months behind schedule, at the end of June 2003, and Plant 2 will likely
close almost a year and a half later than originally announced.
Vernay’s headquarters
and research facilities are expected to remain in Yellow Springs at least
until 2005, Gearhardt said.
Vernay initiated
the plant closures to respond to its shifting markets, excess manufacturing
in North America and the environmental cleanup around the Dayton Street
facilities. Company officials also said that closing the plants would
help keep Vernay financially viable.
Vernay has said that
closing the plants would help facilitate the environmental cleanup, which
Vernay is undertaking through the U.S. Environmental Protection Agency.
The company is conducting groundwater samples on and around the facility,
and is cleaning contaminated groundwater through two capture wells, according
to a report released by the U.S. EPA in October on the process. The report
also said that the company does not need to conduct an “interim
cleanup” of contaminated soil at this time.
When Vernay announced
the plant closures, the company had said that it was moving its Yellow
Springs manufacturing operations to its other U.S. facilities in Georgia
and South Carolina.
Since the company
began shutting down the plants, almost 150 Vernay employees have lost
their jobs or retired.
Gearhardt notified
the remaining workers last week about the delay in the plant closure and
said that the schedules for both closing and layoffs were subject to change.
“I committed
to providing them with periodic updates,” he said. “If the
business slows out of this plant, we may have to lay off a few people.”
For the workers who
will remain in the plant up to a year longer than expected, the discomfort
with being precariously employed is no different than it has been since
the closure was initially announced, union leader Ralph Foster said on
Monday. The remaining workers are those with the most seniority and the
closest to being able to retire. But retirement is not likely for most
of them if Plant 2 closes on its current schedule, he said.
“People feel
the same thing as they did before, ‘maybe we’ll have some
time left, maybe we won’t,’ ” Foster said. “It
moves you closer, but the ultimate goal is not going to be the 30 years.”
—Lauren
Heaton
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