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Plastic Maker Plans to Close Merced, Calif., Manufacturing Plant

INSIGHT

Fresno, Ca, USA

Sep. 6--Fifty employees will lose their jobs when Pliant Corp. closes its Merced manufacturing plant by the end of the year.

The company, based in Schaumburg, Ill., is one of the world's largest manufacturers of plastic film and food packaging products.

Company officials announced the Merced plant closure this week.

"It is a difficult decision to close the plant, particularly when you take into account the impact on our employees," said Stan Bikulege, president of Pliant USA, in a statement. Bikulege said the company closed the plant because of a competitive business environment and the company's efforts to become more efficient.

The Merced plant is one of 28 manufacturing and research and development facilities operated by Pliant.

With sales of approximately $850 million, the company manufactures everything from the plastic bags encasing peeled carrots to intravenous bag wraps used in hospitals.

The Merced plant manufactures products primarily for the food industry. Pliant will shift production to other plants.

The closure announcement shocked Bill Cahill, Merced's assistant city manager.

Merced regarded Pliant as a good employer that provided workers with jobs that paid well.

The city awarded the Merced plant its Business of the Year award for mid-size employers last year, Cahill said.

Company officials were not available to give specific information about wages.

"We are always bothered by any economic loss to the community," Cahill said.

"This particular company has been a good source of jobs."

Pliant has been in Merced for about four years, Cahill said.

It occupied the former Huntsman Chemical building situated at University Industrial Park in eastern Merced and just off Highway 140.

The building once housed a Goodyear Tire plant.

Pliant officials said the Merced site will begin shutting down immediately and fully ceasing manufacturing operations by Dec. 31.

The Merced plant isn't the only one to be shut down by Pliant.

In July, Pliant announced plans to close its manufacturing plant in Fort Edward, N.Y., by early 2003. The plant, operated by Pliant Solutions Corp., a subsidiary of Pliant Corp., employs 125 workers.

However, this week, Pliant also announced plans to expand its Odon, Ind., plant.

That factory produces packaging for cookie, cracker and cereal boxes, and pizza overwrap film.

Founded in 1988 as United Films, the company was acquired by Huntsman Packaging in 1996, which in 2000 became known as Pliant Corp.

 


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Source: The Fresno Bee -----

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