Making good on a promise to merge operations from its recently purchased Decora Inc. acquisition, Pliant Corp. will close Decora's only plant and transfer work to other Pliant facilities.
Pliant, based in Schaumburg, Ill., will close Decora's 220,000-square-foot manufacturing facility in Fort Edward, N.Y., by early 2003 and relocate equipment to various Pliant plants, said Pliant spokeswoman Margaret MacBeth.
About 125 employees of the plant, formerly the flagship facility for decorative adhesives-coatings maker Decora, were told of the news July 11 and given severance packages, said Ronald Artzer, former Decora chairman and president and now president of Pliant's consumer-products subsidiary, Pliant Solutions Corp.
``This is the way companies make sense of acquiring other companies,'' Artzer said on July 12. ``As we got to know about one another and the more we started peeling back layers, it looked best to relocate our strategic base to other parts of Pliant. Pliant has an extraordinary manufacturing business, and this fits right in.''
Unfortunately, the integration comes at some human cost, Artzer said.
Pliant, a large maker of flexible packaging, bought Decora on May 20 for about $18 million. Decora attracted Pliant because of its familiar Con-Tact decorative coatings brand sold at many hardware and home-products stores. The debt-laden company had been under bankruptcy protection before the sale.
The sale also included Decora's sales and marketing office in North Ridgeville, Ohio, which will remain open, MacBeth said. The Decora products now are part of Pliant Solutions.
The company has not decided which Pliant plants will receive the equipment from Fort Edward, Artzer said. ``We hope to make this seamless to customers,'' he added.
Pliant is selling the Fort Edward facility and already has received some interest from an outside buyer, MacBeth said.