Whirlpool molder Core Systems closes headquarters plant

By Michael Lauzon
Correspondent

Published: February 28, 2013 10:11 am ET
Updated: March 1, 2013 1:59 pm ET

Related to this story

Topics Appliances, Injection Molding, Injection molds

PAINESVILLE, OHIO — Custom injection molder Core Systems LLC has extended its shutdown to include its Painesville, Ohio, headquarters plant, according to local reports.

Core Systems closed its other molding plant, in Mount Gilead, Ohio, when major customer Whirlpool Corp. terminated its business with Core Systems on Jan. 24. Mount Gilead employees were notified Jan. 27 about the closure. About 73 hourly and salaried employees lost their jobs in the plant, according to a Worker Adjustment and Retraining Notification Act filed by Core Systems on Feb. 4.

“We have no recourse but to close the plant,” Core President Bill Loebbaka said in the WARN notice.

“At this juncture, we expect the [Mount Gilead] plant closure will be permanent,” Loebbaka said in the WARN notice. Whirlpool took Core Systems to court to force the firm to surrender Whirlpool’s tooling.

Whirlpool, of Benton Harbor, Mich., has not disclosed where it shipped the molds to have its parts made by another firm.

No WARN notice for the Painesville shutdown had been filed as of Feb. 28. Painesville, with a population of 19,563, is the county seat for Lake County, Ohio. It is located 30 miles east of Cleveland.

The Cleveland Plain Dealer reported Feb. 27 that the Painesville plant is closing. The shutdown will affect about 300 employees. The plant ceased operations Feb. 22, according to a report in the News-Herald in Willoughby, Ohio.

Whirlpool represented essentially all of the work in Mount Gilead. About 75 workers at the plant were represented by United Auto Workers Local 1802, according to the local’s president, Lisa Adkins.

“It’s a very bad situation,” Adkins said in a telephone interview.

Mitigating the closure was the hiring of some laid-off workers in other local industries at a Feb. 28 job fair. Workers such as injection press operators made an average wage of $11.15 per hour. Adkins said Core’s Painesville employees were not unionized.

Core Systems officials did not respond to requests for an interview. Loebbaka was quoted in the News-Herald as saying Core will be liquidated and its equipment and buildings will be sold.

Although Whirlpool pulled its work from Core Systems, Core continued a relationship with GE Appliances but Core’s bank, Wells Fargo, would not support the company as a continuing business.

Core Sytems countersued Whirlpool on Feb. 3, alleging Whirlpool misinterpreted an earlier performance agreement plan and actually interfered with Core’s efforts to adhere to the plan. The case is scheduled for trial by jury May 22.

Core was founded in 1997 when industry investors bought molder Encor Technologies in Mount Gilead, according to a market report issued by Plastics News. Core’s Painesville plant opened in 2001, a year before a Chicago-based group of investors bought the company.

Core has specialized in appliance parts for refrigerators, laundry systems and other major appliances. Its capabilities included injection and insert molding, design, parts and assembly development, tooling and prototyping, robotics and secondary services. At last count it had 99 injection presses, many of them all-electric.

Core Systems had estimated sales of $47 million for fiscal 2011 ended Sept. 30, according to the PN market report. Its annual sales were as high as $63 million in 2007 before the U.S. housing market collapsed and dragged down appliance demand.


Comments

Whirlpool molder Core Systems closes headquarters plant

By Michael Lauzon
Correspondent

Published: February 28, 2013 10:11 am ET
Updated: March 1, 2013 1:59 pm ET

Post Your Comments


Back to story


More stories

Image

Austria's Greiner building a foothold in the US rigid packaging market

April 15, 2014 1:22 pm ET

Greiner Packaging International GmbH, one of Europe's largest makers of rigid plastic packaging, now wants to make its mark in the United States.    More

Image

Engel creates new Wintec brand for Asia

April 11, 2014 2:17 pm ET

Engel Holding GmbH has formed a new subsidiary in China that will sell injection molding machinery in Asia under a new brand name: Wintec.    More

Image

Auto industry continuing to drive machinery sales in Mexico

April 9, 2014 3:12 pm ET

KraussMaffei and Engel officials say they are seeing increased sales in Mexico, driven by the booming auto industry.    More

3D printing specialist buys Colorado injection molder

April 9, 2014 5:34 pm ET

ARC Group Worldwide Inc. is expanding its reach to plastic injection molding, tooling and magnesium injection molding with the acquisition of two...    More

Image

China's Xiaomi plastic smartphone finds success where bigger names failed

April 8, 2014 5:09 pm ET

Lei Jun, CEO of China-based Xiaomi Inc. wants to be China's Steve Jobs. The company he founded in Beijing less than four years ago already has over 3,...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events