A change in conditions
Alterations in industry linked to closing of Orc Plastics
By Max Showalter, Journal and Courier, Lafayette, Indiana 04-10-2005 12:07 PM EST
At a time when Greater Lafayette and the surrounding area is preparing to bid adieu to another plastics-related business, observers point to a variety of factors, rather than one specific reason, for the plant closings and job losses.
The nearly 100 people who work at ORC Plastics in Lafayette will be unemployed when the production lines shut down on May 20.
While the buildings and property at 2450 Sagamore Parkway S. are being offered for sale, at a price of $5.1 million, the plastic molding portion of the business has been sold to Kurz-Kasch Inc. in Dayton, Ohio.
Industrial Dielectrics Inc. in Noblesville bought the thermoset bulk and sheet molding compound mixing portion of the company that is owned by Reunion Industries Inc.
"We are seeing more consolidation within that industry. I've noticed that over the past several years," said Cinda Kelley, acting executive director of the Lafayette-West Lafayette Economic Development Corp. "I can't identify why that's happening, although the cost of doing business would be a factor."
Michael Lauzon, who covers the industry for Plastics News magazine, said there may be less demand for the thermoset composite parts that are made at the Lafayette facility, which was founded in 1927 by Lafayette entrepreneur David Ross as Rostone Corp.
"Thermoset parts are gradually losing ground to parts made of thermoplastics ... plastics that soften when heated," Lauzon said. "Thermoplastics often are easier to mold and can offer some strength advantages. That is a trend in the industry that could be hurting Reunion."
Through less than ideal circumstances, Kelley has some knowledge of the plastics industry.
She was executive director of the White County Industrial Foundation in November 2003 when Landis Plastics Inc. announced plans to close its Monticello facility.
About 250 people, involved in the manufacture of injection molded and thermo-formed plastic packaging, lost their jobs when the plant closed in January 2004.
Part of the operation was shifted to a company-owned plant in Richmond, Ind., as owners implemented a consolidation plan for its 19 factories located in 11 states, England, Italy and Mexico.
During a 110-day period between mid-December 2003 and the end of March 2004, 88 employees lost their jobs when work at the Sonoco-Crellin molded plastics plant in Frankfort was consolidated into four other facilities owned by Sonoco Inc., a global packaging giant.
ORC Plastics plant manager Keith Howe declined to comment Friday on the recent filing of a state-mandated Worker Adjustment and Retraining Notification about the closing with the Indiana Department of Workforce Development.
The WARN Act gives the required 60-day advance notice of plans to shut down the 96-employee facility.
"There's a lot of anxiety," said Don Scheiber, labor liaison with United Way of Greater Lafayette, who has helped hold meetings to inform ORC workers of assistance available to them as they begin to search for new jobs. "There's not going to be any insurance available to them. They can buy COBRA (temporary health care coverage), of course."
Scheiber notes that 291/2 years is the average seniority among members of Local 2344 of the International Brotherhood of Electrical Workers, the union that represents production workers at the plant.
"They were asking so many questions. They have never been unemployed," he said. "Now they're facing a future of not going to work."
Robert Truitt worked at Rostone for 15 years, rising to president before leaving the Lafayette manufacturer in 1982. During his tenure, management worked with two different unions and faced two separate strikes.
"I felt I left after I'd given everything I could," he said.
But Truitt recalls those days as special when a handful of Lafayette manufacturers, including Rostone, Fairfield and Landis & Gyr were locally owned and thriving with 1,000 or more employees.
Many of those companies are still standing -- unlike ORC after it closes its doors.
"There is a significant legacy that dates back to David Ross" at Rostone, Truitt said. "We're talking about a serious piece of history in this community that's coming to a close. We've really lost it."
Contributing: Phillip Fiorini/Journal and Courier
At a glance
Famed Lafayette entrepreneur David Ross founded Rostone Corp. in 1927.
Located at 2450 Sagamore Parkway S. in Lafayette, the plastics molded products manufacturer was purchased by Oneida Molded Plastics Corp. in 1996 and was renamed Oneida-Rostone Corp.
It became a division of Reunion Industries in 2002 and was renamed ORC Plastics.
The company provides custom molded products mainly for the electrical and automotive industries.
Copyright © 2002, Federated Publications, Inc.
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