MTD closing Valley City, Ohio, molding plant

By Michael Lauzon
Correspondent

Published: February 22, 2012 6:00 am ET

Related to this story

Topics Consumer Products, Injection Molding

VALLEY CITY, OHIO (Feb. 22, 4:40 p.m. ET) — Following deliberations that met an impasse, management for an injection molding plant in Valley City has decided to relocate the operation to cut costs.

“They wanted us to take out $3.2 million in costs every year,” said Mark Milko, area director for Local 1820 of the Workers United union. Owners and workers at Industrial Plastics Co. concluded negotiations the week ended Feb. 19when they could not reach an agreement.

Industrial Plastics employs about 140 molding parts for parent company outdoor appliance firm MTD Products Inc., also based in Valley City.

Milko said the molding work will move to MTD facilities in Leitchfield, Ky., and Tupelo, Miss., close to MTD plants that assemble appliances like lawnmowers and snowblowers. Neither Leitchfield nor Tupello is unionized. Valley City’s work will move by the end of the year.

Valley City employees have a three-year labor agreement signed in June, but the agreement did not prevent management from moving the plant to save costs.

MTD director of organizational development Kristee Mahler said Leitchfield has enough space to take up Valley City’s production and the move will eliminate overhead from Valley City

Valley City is one of several custom injection molding plants supplying MTD, a private company. MTD’s headquarters staff of about 500 in Valley City will not be affected by the move.

Mahler could not provide equipment details for Valley City but she said the operation is organized along manufacturing cells.

Milko lamented the plant closure so soon after a labor agreement was reached last summer.

“People bought cars and paid on their houses because they thought things were secure for three years,” Milko said in a telephone interview. He blamed globalization for the frequency of plant closures.


Comments

MTD closing Valley City, Ohio, molding plant

By Michael Lauzon
Correspondent

Published: February 22, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Newell Rubbermaid expanding production, employment in Kansas

March 3, 2015 3:31 pm ET

Newell Rubbermaid Inc. is expanding and extending plastics molding technologies at its Winfield, Kan., manufacturing plant and distribution center.    More

Image

Best Places To Work: No. 5, Plastic Components Inc.

March 3, 2015 2:50 pm ET

Plastic Components Inc. had a busy 2014: It built a house, earned a patent, spun off a business, added presses and expanded its staff.    More

Image

Best Places To Work: No. 2, B&B Molders LLC

March 3, 2015 1:56 pm ET

Britt Murphey is trying to retire. But he's just having too much fun.    More

Image

Best Places To Work: No. 4, Ayanna Plastics & Engineering Inc.

March 3, 2015 2:39 pm ET

Ayanna Plastics & Engineering Inc., a Clearwater, Fla., injection molder and toolmaker, ranks No. 4 on the Plastics News Best Places to Work list....    More

Image

German molder picks North Carolina for US manufacturing plant

February 26, 2015 4:21 pm ET

UPDATED — German medical goods company Raumedic AG has chosen Mills River, N.C., for its first U.S. manufacturing site and U.S. headquarters.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events