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

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

Illinois injection molder expands

July 21, 2014 1:23 pm ET

Automotive supplier All-Rite Industries Inc. has added two new injection molding machines to its operations.    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

Image

Infiltrator goes very large scale for injection press

July 18, 2014 1:45 pm ET

Infiltrator Systems Inc. has designed and built a mammoth injection press, with 6,000 tons of clamping force, to mold septic tank halves measuring 15 ...    More

Image

Finding the picture-perfect use of scrap PS

July 17, 2014 12:26 pm ET

Shanghai Intco Industries Co. Ltd. was established 20 years ago in the United States as a trading company, but now based in China, the firm claims to ...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events