Company: Economic downturn prompts closing of Opelika plant
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Opelika's BFGoodrich Closing Interview
Opelika's BFGoodrich Closing Interview
Staff writer
Published: April 13, 2009
Updated: April 13, 2009
After 46 years, the BFGoodrich Tire Manufacturing plant in Opelika will close its doors for good.
Scott Clark, the chief operating officer of Michelin North America Small Tires, said in a one-on-one interview Monday afternoon with the Opelika-Auburn News, that the doors will be permanently closed by Oct. 31, leaving approximately 1,000 wage and salaried workers out of work.
Click here for the press release
Clark attributed the decision to close the plant to a number of factors, including the excess capacity at the Opelika plant and a significant downturn in the passenger tire market in three of the last four years.
“That is absolutely unprecedented,” Clark said.
Clark said consumers are driving less and postponing tire replacement. Throw in a slumping automotive market, and Clark said something had to give.
“This is not an easy announcement for us or the community, that’s for sure,” he said.
Opelika employees were told of the plant’s closing earlier Monday afternoon. Clark said they took it well, and may have had some idea this was coming considering the present national economy and because the plant announced some temporary layoffs in February.
For the next six months, Clark said it will be “business as usual” in Opelika producing tires and helping employees manage the transition. But starting in October, jobs will be cut.
“That is our number one priority - to minimize the impact on employees and the community,” Clark said.
The Opelika plant opened its doors in 1963 when it manufactured tires under the Uniroyal label.
Clark said the company offers an outplacement program to help employees find other jobs, as well as low-interest loans. BFGoodrich plants in Fort Wayne, Ind. and Tuscaloosa may rehire some of Opelika’s workers, he said.
After running an analysis of those three tire plants, Clark said Opelika was deemed the logical facility to close. Clark insisted the choice had nothing to do with the productivity of the Opelika employees, but rather what equipment each facility has and what they do.
“It is much easier to make the Opelika products in the other facilities than the other way around,” he said.
Clark said the decision to close Opelika is permanent. Even though the market will rebound, he said it wouldn’t be quick enough to support a reopening here.
“The reality is there will be no need for this facility in the future,” he said.
Reader Reactions
If you will look even deeper, you will find that this downward spiral began with the Clinton Administration and the Democrats continue to drive the train of socialism once again.
mfg advocate, if you have been paying attention to the economy before now. You would know that President Obama did not have anything to do with the economic mess were in right now. It was the previous administration. You may want to get your facts before you start pointing your finger. Universal Healthcare would be great. Now think of it like this, you will need the healthcare after your benefits run out. Due to the fact that you worked with a company that was unionized, I seriously doubt you’ll be able to get another decent job with a decent salary.
To MFG Advocate, President Bush is the cause for all the problems that the economy is having now. He was the worse president in US history. It will take President Obama two terms to fix the mess that Bush and the republican party has put this country in, and people like you will always keep this country hurting.
Unfortunately, this seems to be the current trend in the US. As our new President continues to implement HIS current agenda, more and more American jobs are lost to our neighbors overseas. Don’t forget to tune in tomorrow as HE tries to push forward HIS agenda of universal healthcare. THANKS FOR ALL OF YOUR CONTINUED HELP. GLAD THEY ELECTED YOU.
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