Custom molder Erie Plastics Inc. will close its Westborough, Mass., injection molding plant by the end of June as it consolidates operations into its Corry, Pa., headquarters.
The 77,000-square-foot plant in Westborough will be mothballed, but some assets will be kept in place because the company hopes to sublease it, Erie said May 1.
The move will affect 35 employees in Westborough, where Erie has operated its plant since 1996, when it opened to supply Gillette Co. Today the plant handles overflow closure production, officials said. The consolidation means that roughly 20 jobs will be added in Corry, where Erie Plastics currently employs about 400.
``We deeply regret the closing of Erie Plastics' Massachusetts plant,'' Hoop Roche, chairman and chief executive officer, said in a May 1 news release. ``Although we attempted to expand business in New England, most of our opportunities have occurred in the Midwest.''
Spokeswoman Jane Roche said the closure is not a reflection on the state of Erie's business. The need for the facility declined after Erie relocated its headquarters to Corry in 2001 and nearly tripled its operating space from 156,000 square feet to 465,000 square feet.
``We're doing well,'' she said in a May 1 telephone interview, noting that Erie's operation in Székesfehérvar, Hungary, is up to 45 employees.
Erie had subcontracted its labor in Hungary from Loranger Ipari but, as of April 20, has ended its four-year contract.
Officials will relocate assembly equipment and seven presses to Corry by the end of June, Jane Roche said. Erie is exploring the sale of some of the assets and deciding what will stay behind in Westborough.
Erie reported 2005 total sales of $89 million in Plastics News' most recent ranking of North American injection molders, with $82.2 million in injection molding sales.