The Star Beacon; Ashtabula, Ohio

Local News

June 1, 2012

ESAB makes it official: Plant closes July 31

ASHTABULA TOWNSHIP —  ESAB Welding and Cutting Products on Middle Road will close July 31, company officials said Thursday.

The last 90 employees — 70 hourly and 20 salary — received their 60-days notice Thursday morning, finalizing the closing of the plant in its decision to move to South Carolina.

A year ago, ESAB officials announced it had selected Union County, S.C., as the site of its new plant, which will replace its Middle Road facility, once known as Linde Wire. About 100 of those workers are represented by the United Auto Workers 1834.

“I really don’t know what we’re going to do (after July 31),” said Ivan Stowers, chief union steward of United Auto Workers 1834. “We are kind of stuck here; we weren’t going to leave without our severance pay.”

The company began phasing out operations last fall and laying off its Ashtabula employees in January.

ESAB then went on to invest money in the 250,000-square-foot facility in Union County, S. C., which will employ more than 100 persons. 

Stowers said it’s disheartening to hear about the company’s investment in South Carolina when he and his co-workers are losing their jobs.

“I have 20 years in (with ESAB),” he said. “It’s kind of discouraging when you have so many years in and you have to start from scratch. I hope local employers will consider us.” 

Ashtabula City Manager James Timonere said it’s not only a loss for Ashtabula Township and Buckeye schools, but for the residents of the city.

“Any time you lose jobs in the area, it affects everybody,” he said. “But in the process of trying to get ESAB to stay here, it became obvious how much more South Carolina could offer them ... they offered them the world. We could never do that in Ohio.”

Ashtabula County Port Authority, Ashtabula Area Chamber of Commerce, Growth Partnership for Ashtabula County and the city of Ashtabula tried to keep ESAB in Ashtabula County, but Union County and the city of Union made ESAB an offer they seemingly couldn’t refuse:

The county and the city jointly purchased a former textile mill building for $800,000. The county and city is leasing the plant to ESAB over five years. The city is reducing its water, sewer and natural-gas rates for the new company during its first three years in Union city. 

In addition, a 6 percent fee will replace the 10.5 percent property tax the company otherwise would be required to pay, for the next 30 years. A Special Source Revenue Credit will be provided during the company’s first five years of paying the fee, equal to 15 percent of the fee the county would receive otherwise. A $100,000 grant also is coming from the county’s economic development funds.

 

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