In another sign of the economic times, Glenville manufacturer Super Steel announced that it will be shutting down, a move that will affect nearly 175 families.
Super Steel announced Monday, Dec. 1, that they will begin layoffs after Christmas and will continue through April. News of the shutdown came as a surprise to many local officials, residents and employees.
It’s a company that we really did not want to lose because they pay well and the jobs seemed stable. It was a major part of the park, said Glenville Supervisor Frank Quinn.
The company cited a `dramatic downturn in the global and national economies and a steep decline in orders` as reasons for the decision to close the Glenville plant.
`We will continue to pursue all options, including the possible sale or lease of the facility to another business if that course of action would help to create opportunities for the community,` said the company in a statement.
Super Steel, which is based in Milwaukee, makes rail cars. The company opened the Glenville plant in 1996, making it the first locomotive manufacturer in the area.
In the early ’90s, Super Steel came to Schenectady to build locomotives for General Motors Corporation under a contract worth $70 million. They also had contracts with the state Department of Education and Amtrak.
Quinn said that in addition to the families hurt by the layoffs, homeowners in the area will feel the tax impact when Super Steel, a major contributor to the tax base, closes.
`It’s an awful thing to lose jobs, but when you have taxes no longer being paid on an $8 (million) or $9 million property, the homeowners will suffer having to make up the difference,` said Quinn.
Quinn said the town budget for next year has already been passed and includes the taxes that would have been paid by Super Steel. The Galesi Group owns the land that the plant is on.
Ray Gillen, chairman of the Metroplex Authority, said Super Steel will continue to pay taxes until they lease or sell the building. Workers were told the company will try to lease the building to a company that may be able offer some type of opportunity to displaced workers. Gillen said the industry for making locomotives parts has come to a halt, and Super Steel reported no orders for 2009. Gillen referred to Super Steel as a `stand-up company.` He said company officials chose a Monday to tell their employees because they wanted them to be able to have the week to ask questions.
`Super Steel had an outstanding 2008, but there are no orders on the books and they are doing what they have to do. This is unprecedented, what the transportation industry is seeing. People who have been in the business for 40 years say it’s the worst they have ever seen,` said Gillen.
Gillen said the Super Steel facility is in perfect condition and was used to manufacture entire locomotives, some of which were shipped to Africa last year. He said the property has a lot of potential.
This is not the first time the company has been in the news. In 2006, the company was made to settle a civil rights lawsuit initiated by 13 black former employees. Accusations were made that the company allowed racist harassment and segregation. The plaintiffs were paid $1.25 million by the company, which also later fired eight white employees.“