CEDAR RAPIDS -
The only good news Tuesday for about 257 Sealed Air Cryovac employees is that they might have a job for another ten months.
Sealed
Air Corp. sent letters to Cedar Rapids employees indicating that the
company will be closing the food packaging plant at 1125 Wilson Ave. SW
in six to 10 months.
The plant has been in operation for 57
years, but employees were cautioned earlier this month that a closing
was under consideration. The company confirmed its closing plans
Tuesday at meetings with employees and with letters sent to their homes.
In
a prepared statement, Sealed Air Corp. said it is working to develop
manufacturing centers of excellence in order to improve productivity
and efficiency. The work performed in Cedar Rapids will be relocated to
several existing facility across the company's network of North
American plants, according to the statement issued by Ken Aurichio, a
corporate spokesman.
The bulk of the work is expected to go to plants in Arkansas, South=2
0Carolina and Mexico that already make food packaging.
"This
was an extremely difficult decision for Sealed Air to make,
understanding the impact to our employees and the Cedar Rapids
community," Aurichio said in the statement. He said Sealed Air Corp.
considered operating costs, strategic location, proximity to other
facilities and levels of technology in its decision.
Economic
development officials in Cedar Rapids had held telephone discussions
with local plant management and corporate officials in an effort to
convince the company to stay in Cedar Rapids. They were rejected in
their attempts to gain a meeting aimed at convincing the company to
stay, according to Mark Seckman, president of Priority One.
"I think it was strictly a short-term, cost-cutting decision," Seckman said..
Aurichio
said the decision was a result of a strategic process that began about
two years ago. He said the company announced the decision as soon as
possible to give employees more time to prepare for the closing.
Seckman
said he was not surprised by the closing decision. He interpreted the
company's refusal to schedule a meeting with Priority One as an
indication that the decision had been made already.
Seckman said
the Cedar Rapids location might be at a disadvantages to other Sealed
Air plants due to its age and limited site size, "but one thing we know
they will not get is the kind of work force they had in Cedar Rapids."
In previous meetings, Seckman said the company has praise
d its Cedar Rapids work force as one of its best.
Sealed
Air Corp., based in Elmwood Park, N.J., announced plans six months ago
to open a new plant in Louisville, Ky. Sealed Air will lease 415,000
square feet of space in an existing industrial center, and employ about
100 in the new Kentucky facility, which was slated to open in August on
a limited basis.
The plant will produce new product lines
obtained by acquisition by Sealed Air within the last year, according
to Aurichio, who said it will not make any products now made in Cedar
Rapids.
The Cedar Rapids plant was unionized. Representatives of
Teamsters Local 238, which represented plant workers, were not
immediately available for comment.
Sealed Air will meet with the unions to discuss severance terms for employees, Aurichio said.
The Wilson Avenue plant will be offered for sale, according to Aurichio, who did not know the asking price.
Seckman said he thinks there will be a market for the plant because of its size and close proximity to I-380.