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.
