(Feb. 9, 2003) — Last week, we reported that the state of Ohio is handing out some big bucks to Demag Plastics Group to help keep its main U.S. factory in Strongsville. (For people who haven't been keeping track of DPG's evolution, this means Van Dorn.)
Demag Plastics Group obviously played South Carolina off Ohio, soliciting deals before deciding to stay put in the Cleveland area and extracting the government help. Was Demag Plastics Group actually thinking seriously about pulling out of Strongsville? That's a question for Bill Carteaux and the other top executives. Does it even matter? That's how the economic development game is played.
DPG certainly can use the money. It's suffering just like every other machinery maker that sells into the still-uncertain U.S. market. The past three years have been devastating for everybody.
Already, government money has helped two other Ohio-based machinery makers: Milacron Inc. and the HPM Division of Taylor's Industrial Services LLC.
It's money well spent. Every machinery player could use some help. Because if the market doesn't improve soon, consolidation is bound to begin — and the companies in the best financial shape are much more likely to survive.