Job cuts at chemical plant
By Sam Shawver, sshawver@mariettatimes.comArticle Photos
Fact Box
Americas Styrenics' Marietta plant history
Built in 1955 by Union Carbide.
Bought by Gulf Oil in 1978.
Chevron bought Gulf in 1985.
Chevron partnered with ConocoPhillips in 2000.
Chevron Phillips partnered with Dow Chemical Company to form Americas Styrenics, which began operations in May 2008.
On Tuesday, Americas Styrenics announced it was reducing the workforce at the plant by at least 60 and closing six of nine production lines.
Americas Styrenics, formerly Chevron Phillips Chemical Co., will eliminate at least 60 jobs in the next four months at its facilities on Ohio 7 south of Marietta.
Ivin Rohrer, human resources manager at the Marietta facility, said the permanent layoffs are scheduled to begin the first of March and will continue in phases through the end of April.
"This is a difficult time for our company; emotions are running the gamut for everyone here," he said.
Americas Styrenics President and CEO Tim Roberts agreed in a company news release Tuesday afternoon.
"Decisions like this that affect the lives of our employees are difficult," he said. "However, our operations must reflect the current business environment. This move is designed to ensure the future success of the Marietta facility and of our business as a whole."
Rohrer said the job cuts were a result of a reconfiguration of assets at the Marietta site in which six of the plant's nine polystyrene production lines will be shut down.
"The polystyrene market has been shrinking over the last five years," he said.
"The six older lines we are shutting down each produce 50 million pounds of product a year, while the other three lines produce about 120 million pounds each per year," Rohrer explained. "So it comes down to less equipment for us to maintain and operate. We will be able to produce about 400 million pounds a year with the three remaining lines.
"And this reconfiguration will place us in a good position for the long term," Rohrer said.
The layoffs will include members of United Steelworkers Local 14200-1, as well as salaried employees, according to union president Mark Wurtzbacher, who said the cutback was announced to employees Tuesday morning.
"But I understand the decision was made by corporate in late December," he said. "There are currently 103 union employees, but after the layoff there will only be about 27 salaried and 48 union workers left."
Wurtzbacher added that all of the union members being laid off had been hired after April 1996.
The Marietta plant, the largest of Americas Styrenics' six facilities across the U.S., is also the only plant that has union representation, and no layoffs have been announced at the other facilities.
Rohrer said the reconfiguration was completely driven by the need for asset reduction and was not in any way related to the employment of union workers.
He said a severance package that includes two weeks pay for every year worked, six months' medical coverage and $5,000 toward educational and retraining benefits would be offered to the furloughed employees.
Wurtzbacher, who will be among the laid off workers, said the union is trying to provide as much opportunity as possible for members whose jobs will be cut.
"You have to do what you have to do. But everyone's aware of what the current economy is like," he said. "Everybody seems to be cutting back and bracing for what may lie ahead.
"I hate to see this, but I do hope that this will be the end of layoffs for the Ohio Valley," Wurtzbacher added.
Denny Longwell, staff representative for United Steelworkers District 1, said the cutbacks were not totally unexpected.
"In all honesty, I have anticipated this for a while; all the signs were there," he said, noting the decrease in demand for polystyrene and competition from foreign companies.
"I have mixed feelings," Longwell added. "I'm happy that it's not a total shutdown, but this is the 11th plant I've been associated with that's been closed or partially closed."
Mike Jacoby, executive director of the Southeastern Ohio Port Authority, said the polystyrene business has been facing challenges and noted that another polystyrene company, NOVA Chemicals, closed its Belpre plant at the beginning of 2008.
"These companies are struggling to remain profitable," he said. "And predictions about when this economy will turn around are all over the board right now."
Jacoby said things will eventually get better, but in the immediate future the job market will be tight.
"Some workers may have an easier time finding other employment than others," he said. "A lot will depend on their experience and skills."
Headquartered in The Woodlands, Texas, Americas Styrenics LLC is a leading integrated producer of polystyrene and styrene monomer in a variety of markets throughout the Americas. It is a joint venture equally owned by The Dow Chemical Co. and Chevron Phillips Chemical Co. LP.
According to Tuesday's news release, the company has not ruled out the possibility of more layoffs in the future, saying that Americas Styrenics must continually consider structural changes and other opportunities to improve profitability as market conditions change in order to remain competitive.
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sickofdetour
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01-09-09 1:25 PM
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Here is his exact posting to me when I asked his profession NoelTyler 01-08-09 9:32 AM »Report Abuse bankruptcy lawyer
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sickofdetour
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01-09-09 1:24 PM
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The fact that he is a bankruptcy lawyer isn't a claim that I can't back up, he admitted it to me on another posting
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Johanna
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01-08-09 10:38 PM
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Sickofdetour...careful making allegations that you can't prove..though one Atty. come to mind...
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fairytales
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01-08-09 9:09 PM
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sorry yall...spelling mishap...writes..heard thats a no-no here...
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fairytales
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01-08-09 9:08 PM
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Would that suprise anyone..after reading some of the blogs that NOEL rights?
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sickofdetour
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01-08-09 3:15 PM
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Parrothead: I have figured out why NoelTyler takes so much enjoyment in all of this. I asked his profession and turns out he is....a bankruptcy lawyer!! He is making millions of of others misfortune!
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Johanna
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01-07-09 11:33 PM
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Ouch! That had to hurt!
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Johanna
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01-07-09 11:32 PM
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Did Noel just get slammed?
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Parrothead
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01-07-09 10:27 PM
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NoelTyler – Wrong again! Not “EVERY” outgoing first family buys new china. A few examples of ones that did NOT purchase new White House china are, 1) Nixon 2) Carter 3) Bush Sr. Try getting your so called “facts” straight BEFORE you show us all how ignorant you are.
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NoelTyler
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01-07-09 6:46 PM
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You go Johnny! Tell them how it is! And, Goulash, EVERY outgoing first family buys new china, it's a tradition. Nice try slamming GW and Laura with your misleading rhetoric.
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JohnnyRingo
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01-07-09 5:48 PM
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yea, you're right Hawk31. George did this all himself. I wonder where the Congress was during the last eight years? I didn't know any one man had that much power. I think there's enough blame to go around for both parties on this issue............
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goulash
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01-07-09 5:31 PM
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First lady Laura Bush introduced the new Bush china -- with a price tag of more than $550,000 -- less than two weeks before she and President Bush move out. The first lady was careful not to mention the price tag when she introduced the new presidential plates: one, a table set of formal china in white, green and gold; the other for the residence painted with magnolias in honor of the old trees outside the White House windows. Can't make this stuff up!
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goulash
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01-07-09 4:39 PM
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Genieman, You might want to google the US historical unemployment rates since you believe that the Carter years were a time of "no work." The highest unemployment under Carter wasn't any worse than under dear old Bush II. Around 7 percent. The worst unemployment since the Great Depression was during the Reagan years. 1983 saw unemployment at over 10 percent nationally. Look it up.
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Genieman
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01-07-09 3:41 PM
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Thanks Parrot but hey I'll be doin something...won't be laying around waiting on a Gov. check
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Genieman
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01-07-09 3:40 PM
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Obama will repeat the Jimmy Carter yrs. High inflation, high taxes, high interest rates = no work.The real problem is there is no one that can really straighten things out. It will take the public at large learning to take care of each other
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Parrothead
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01-07-09 3:34 PM
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Sorry to hear about you job loss Genieman.
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seasons
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01-07-09 3:32 PM
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Some more reasons .....People not buying VHS tapes ,made from Hips polystyrene .Also the ....I POD ...kids are downloading music and movies now . The cases were made from Crystal polystyrene (CD ,DVD). Also no airline food trays anymore and Mcdonalds sandwich trays . Also kids not playing board games all playing on line now. So I gueess the v=ever changing tech market has killed polystyrene .
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Parrothead
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01-07-09 3:32 PM
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Orchardfarmer – along those same lines, when a corporation moves their production facility to another country, they then purchase the needed polystyrene from a supplier in that country. Whether it is for the product itself or for its packaging. Then the final, packaged, product is shipped back to the United States for sale. Hawk31 is also right that part of this is a direct effect of George W Bush’s willingness to sign unfair trade agreements with 432 countries during his administration. He did this with no thought or concern for what it would do to the average American. His only concern was for the investors, CEO’s and corporations.
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Genieman
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01-07-09 3:25 PM
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Ok people, the unions in this country are dieing. So is the way of life for the american worker.So are many companies.No market=no sales=no jobs. It will be yrs. before things, the economy is really doing well again.It's time to pay the piper for all the goverment we as voters have been asking for for the last 40 yrs.The time is coming soon when we all will be glad to work longer and harder for less..beats making nothing...yea, were in deflation now, but when the Gov. trys to spend the country out of this mess watch out. I got news today that my job will end by March...So my ? is how can everyone get $ from the Gov. if no-one is paying into it? (will work for food) as of March 1st.
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Parrothead
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01-07-09 3:24 PM
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The lose of this plant is a blow to this area. This facility has employed hundreds over the years. It has been a good neighbor and always respected the environment. It has supported organizations, festivals and charities in the area along with its employees. All of this is lost when jobs are eliminated. It is a very small person who sees this and then makes light of it or blames those who are being hurt by it.
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Parrothead
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01-07-09 3:23 PM
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The lines that are being dismantles are old lines built in the 1950’s. They are small and the 6 of them put together do not produce what the remaining 3 can. (The competitors have single lines that produce as much as the 3 remaining lines.) The 3 lines being left have approximately less than half of the rotating equipment of the other 6. The cost of running and maintaining all of that extra equipment is what made them inefficient, not the employees running them. Transportation cost to ship the product is high due to the lack of competition for CSX. The rates for rail service in this area are much higher than other locations.
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Orchardfarmer
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01-07-09 3:16 PM
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There is really a simple reason why the plant has to cut back. A key use of polystyrene is making foam - (Styrofoam) - which is used in packaging. If everybody else is slowing down, we don't need as much styrofoam made, or polystyrene. Of course, a few years ago I remember an enviromental movement to get rid of styrofoam packaging at such places as McDonalds and in packing peanuts. The chickens have finally come home to roost.
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Parrothead
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01-07-09 3:13 PM
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I guess the Times don’t want any “facts” to be posted; my posts have also been removed. Another thing that makes this site expensive is all of the Homeland Security requirements placed on it because it has a river dock facility. This facility has been FORCED to spend thousands and thousands of dollars on fencing and cameras to comply with regulations. All of this adds to the cost of doing business and makes them less competitive in the market. So stop blaming the workers. The workers went to work every day, did their jobs and did them to the highest level possible. This is another example of management dropping the ball and the workers paying for the mistakes while the managers all still have their jobs.
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seasons
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01-07-09 3:12 PM
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The truth about the Marietta plant is that it was in a no win situation by the Chevron Corp. Chevron sells Benzine (a by product made when making gasoline ) to a plant in Louisianna where it is made into Styrene then shipped to Marietta at full price .Chevron has made it impossible for the St James Plant in Louisianna or the polystyrene plant in Marietta to make money . The Marietta plant has been top heavy for years with to many Data keepers. Bad management decsions from poor plant mangers has finally caused for this to happen. Workers at the plant had a great reputation for being safe(VPP STAR SIGHT) . The plant was always so clean and well kept . This move could let the company make money ....but lookout Americas Styrenics will move line 14(super line) to another Dow plant nearby then the marietta plant will be history. In the 90's we were told bigger and better ...now in this century it is leaner meaner ..good luck to all who lost jobs ...when one door closes another opens ....
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Hawk31
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01-07-09 2:47 PM
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Do you hear the large sucking sound?? It's the George Bush legacy sucking the life out of this country. Blame all 59 million people that voted for that shoe dodging idot. That is possibly the only thing he can do right??
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