A Columbus plant that has been a mainstay of the local economy since 1963 plans to phase out its manufacturing operations here.
Omnova Solutions Inc. announced Tuesday the sale of wall covering assets to J. Josephson Inc., a private company in South Hackensack, N.J. The shut-down of the Yorkville Road plant is expected to take 12 to 18 months. Omnova, headquartered in Fairlawn, Ohio, will continue its decorative products distribution operations locally, including customer service and technical support.
“It’s the only plant that’s affected,” said Sandi Noah, Omnova vice president of communications.
Omnova Solutions is a technology-based company with pro forma sales for the 12 months ending Aug. 31 of $1.2 billion and a global workforce of approximately 2,700. Omnova produces emulsion polymers, specialty chemicals, and decorative and functional surfaces for a variety of commercial, industrial and residential end uses. The Columbus plant produces wall coverings.
“This is the result of market conditions of commercial wall covering,” Noah said, adding the sale was not prompted by striking workers.
Approximately 172 union workers walked out May 21, 2010, after refusing to agree to a new contract they said would have caused them to lose incentives, seniority and shift rights. Omnova hired 140 replacement workers, who then petitioned the National Labor Relations Board for an election to make Omnova a non-union plant. The July election was called into question, and all cast ballots were challenged. The matter is now pending before the three-member labor board.
Joseph Artiles with the NLRB regional office in Nashville said Monday he doesn’t expect a decision until after the next presidential election.
The president appoints members to the five-person board who must be confirmed by the Senate. Two positions are vacant, and one board member’s term expires Dec. 31.
Artiles said this morning he is not sure how the sale will affect the matters before the NLRB.
“I guess we’ll have to wait and see what happens to the plant,” he said.
The NLRB will decide whether to count ballots to make jobs at the plant non-union, jobs that may not exist a year from now.
Artiles said he will spend the next few days verifying details of the sale and meeting with the respective parties to see whether their positions have changed.
“I’m sorry to see this happen,” he said.
Noah said 225 workers are employed at the plant; it’s too early to know how many workers will be affected but the number will be “significant.”
The demand for commercial wall coverings had declined 50 to 60 percent since pre-recession days.
“It was obvious that consolidation would occur,” Noah said.
All manufacturing jobs in Columbus will move to South Hackensack, N.J., over the next 12 to 15 months, the company said in a news release. Jobs to remain in Columbus include customer service and technical support for the decorative products distribution operation.
The building will not be sold, but Noah said a lot more room will be available once manufacturing ends. The company has kept the property updated.
“There will be plenty of room left at the site for another manufacturer or distributor to move in,” she said, adding the changes will begin in the next two to three months. The company will assist its employees throughout the transition.
“Under key terms of the transaction, Omnova will receive approximately $10 million in cash and three years of royalty payments for future sales of Omnova-based patterns. In addition, Omnova will retain approximately $7 million in net working capital and the cash flow associated with those assets. This will be partially offset by Columbus plant transition and manufacturing wind-down costs over the next 12 to 15 months,” the company said in the news release.
“While our presence in Columbus will be reduced, we are pleased that our distribution operations and our ties with the community will continue,” Kevin McMullen, Omnova Solutions’ chairman and CEO, said in a news release. “Columbus has been an important part of the Omnova story since the plant first opened in 1963, and we value the long-standing local government and community support.”
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