Glastic Molding closing Ohio factory
CLEVELAND - Thermoset molder Glastic Molding LLC will close its Jefferson, Ohio, plant next summer.
Glastic management at first told the unionized workforce that Jefferson would shut down in March. It later pushed the closure back to June 2005, according to Bill Lally, president of Local 758 of the United Electrical, Radio and Machine Workers of America.
Lally said by telephone Glastic plans to convert Jefferson into a warehouse and move production to Glastic plants in Salem, Mich., and Mexico City. While the plant now employs 58 hourly workers, the union local will shrink to 10 or fewer employees when it becomes a warehouse, Lally said. The union wants the jobs back but failing that is pressing for better severance pay.
Glastic's head office is in Cleveland, and the company is owned by Crawford Group of Grosse Pointe, Mich. Glastic and Crawford officials did not return telephone calls.
Lally said his local held a news conference Oct. 26 outside the Glastic plant to publicize the members' plight. In attendance was UE national leader Bob Kingsley and Diana Sowry of the Ashtabula Federation of Labor. Kinglsey and Sowry lashed out at the Bush administration for the loss of millions of U.S. jobs.
Glastic set up a Mexican joint venture earlier this year. At that time it said it would close the Salem, Mich., plant. It did not explain why it decided to close the plant in Ohio.
Royal Group investigation spreads out
WOODBRIDGE, ONTARIO - The Royal Canadian Mounted Police is casting a wider net in its probes of Royal Group Technologies Ltd. and officials of the Woodbridge-based plastic extrusion giant.
Royal Group announced Oct. 28 that a second production order was issued by RCMP to the Bank of Nova Scotia. The order, dated Oct. 25, requests banking documents alleging criminal activity on the part of earlier-named officers, and for Ron Goegan, the current chief financial officer, and Fortunato Bordin and Domenic D'Amico. The latter two are not executives at Royal Group but are significant shareholders. As well, at the end of 2003 Bordin and D'Amico held 20 percent and 15 percent stakes, respectively, in St. Kitts Beach Resort Ltd. Goegan's stake in the resort was about 0.02 percent.
The second production order, similar to a search warrant, also alleges theft exceeding C$5,000 (US$4,078) for Bordin, D'Amico, Royal Group Chairman Vic De Zen, President Doug Dunsmuir and former CFO Gary Brown.
Royal Group's special committee relating to the investigations continues to stress that an independent investigation by auditing firm Kroll Linquist Avery last spring found no evidence that costs were improperly shifted from the St. Kitts resort to Royal Group.
The committee, comprising all Royal's independent directors, stated Oct. 28, ``In the absence of any new or contrary evidence or information, the independent directors continue to fully support both Mr. Dunsmuir and Mr. Goegan.
``We continue to believe that it is important that Royal Group's management team be able to focus on operating the company and growing its revenues and profitability for the benefit of all shareholders.''
Three R Plastics constructing facility
ROUND LAKE, ILL. - Custom injection molder Three R Plastics Inc. plans to move into a new, larger plant by the end of the year.
The Round Lake-based firm will vacate its current, leased facility for a 10,000-square-foot building it is constructing in Spring Grove, Ill., said Three R President Michael Gore. Not only is the new $500,000 plant twice as large as its current one, it will have a more efficient layout, Gore said in a telephone interview.
Three R expects to get better productivity in its molding and toolmaking operations as a result of the move. It also hopes to increase molding capacity by adding one or more injection presses. Three R now runs seven presses with clamping forces from 28-200 tons. About 80 percent of the new floor space will be for manufacturing, split between molding and toolmaking.
Gore said the company he founded 10 years ago specializes in small, precision parts, and prototyping and short runs. It does molding and insert molding for automotive, medical, telecommunications and other markets. Nearly all its tool-building work relates to its injection molding jobs.
Gore jointly owns the company with his father. The nine-employee business has annual sales in the $1 million to $2 million range. It recently obtained ISO 9001:2000 certification for both its molding and tool-building operations.