More space is about to become vacant at the Glenville Business and Technology Park, as Sealed Air Corporation plans to close its local plant and lay off 70 workers.
After more than 20 years of local operations, Sealed Air Corp. filed paperwork with the Department of Labor on Thursday, Feb. 9, stating its intention to close its Scotia facility. Layoffs are proposed to begin between May 10 and May 20.
The plant produced protective packing including foam-packing products, according to a company representative. Some well-known brands owned by Sealed Air included Bubble Wrap, Cryovac food packaging and Diversey cleaning and hygiene products.
Ken Aurichio, spokesman for Sealed Air, said the closure is an initiative to improve efficiencies. The reason cited for closure in the filling was simply “economic.” The leased facility is around 300,000 square feet and consists of three different buildings.
Before settling on the closure, Sealed Air considered operating costs, plant location, proximity to other facilities and technological capabilities, Aurichio said. He declined to comment on how much money Sealed Air estimated to save through the closure, although the figure is known internally.
“This was an extremely difficult decision for Sealed Air to make, understanding the impact to our employees and the Scotia community,” Aurichio said in a statement. “It was determined we can best serve our global manufacturing strategy from other locations.”
Most of the orders fulfilled at the Glenville plant are planned to shift to Louisville, Ky., plant, said Aurichio, because there is “more modern equipment” and operations are planned to run 24 hours a day soon. He said some of the work could go to its facility in Holyoke, Mass.
Glenville employees will have an opportunity to apply jobs at the other two facilities, said Aurichio, and employees not retained will receive a severance package.
The local closure filing occurred the same day Sealed Air announced plans to close its Rochester facility, which would affect around 180 employees.
New Jersey-based Sealed Air has approximately 26,000 employees and reported net sales of $7.6 billion in 2010. It also operations in 69 countries and distributes to around 175 countries. It claims to have 138 manufacturing facilities worldwide.
Glenville Supervisor Christopher Koetzle said he was saddened to hear of the closure.
“We were sorry to hear they are leaving Glenville and obviously our first thoughts are with the employees who will be losing their jobs,” Koetzle said. “We will do whatever we can to support them and help them find new jobs in the community.”
Ray Gillen, chairman of Schenectady Metroplex Development Authority, said he hoped to retain most employees at county businesses. Metroplex is working with the state Department of Labor, Sealed Air and town officials to gather information on those laid off for outreach efforts.
“Our goal is to try and help place these employees with other expanding businesses in the county, including the business park in Glenville.”
The town’s second priority, said Koetzle, is to market the space to another company. He doesn’t believe it will lay vacant for too long.
“It is an attractive space, so I think there is going to be a lot of companies that will be looking at that space,” Koetzle said. “There is so many positives to it … I think we will be able to find somebody for it pretty easily.”
He cited the nearby transportation system and other larger area businesses, such as GlobalFoundries Fab 8 facility in Malta and General Electric, as appealing aspects for the site.
Sealed Air’s lease agreement although doesn’t end until 2015, so the company would still make payments on the vacant space. Gillen said he is hoping Sealed Air will sublet the space, possibly at a discount, to another company since it must make payments anyway.
