As editor of The Providence, R.I., Business News posted a long story on Saturday about Rhode Island companies that are worried about a proposed hike in energy rates. The feature focused on Polytop Corp., a closure injection molder in Slatersville, and Toray Plastics (America) Inc., a film extruder in North Kingstown.
According to the story, the proposed hike in electricity distribution costs would cost Toray $586,735 a year.
Shigeru Osada, Toray's senior vice president for engineering the maintenance, told the PBN that the company's plant in Virginia pays about 4 cents a kilowatt-hour for electricity. In Rhode Island, it pays about 3 cents just for distribution, and 6 to 12 cents when the price of electricity is factored in.
When the economy rebounds, Osada told the paper, there will be "a discussion about expanding in the future, but definitely not here."
Say what you want about communities and legislatures with anti-plastics biases, but many states would love to have companies like Toray and Polytop in the fold.
If Rhode Island can't find a way to accommodate these companies, get ready for the blame game and lots of finger-pointing, if the companies choose to invest to expand in other states.
Comments (1)
No wonder why RI has an unemployment rate of over 12%, second only to MI. The story in RI is the same as in MI, no manufacturing and no construction. Pretty soon the electric companies will be unable to increase costs to businesses because there will be none left. As Osada says, they will expand in the future but "definitely not here." That is a sentiment that has gained traction here in RI with all businesses not just with plastic manufacturing. If you also consider sales taxes (7%, the highest in New England), the costs of heating fuel, and increasing health care costs for businesses, it is no wonder everyone is moving south.
Posted by Matthew K | September 15, 2009 9:38 AM
Posted on September 15, 2009 09:38