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DAK Americas might close Navassa plant

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By Wayne Faulkner
Wayne.Faulkner@StarNewsOnline.com

NAVASSA, NC (StarNewsOnline.com) -- DAK Americas is considering shutting down its plant in Navassa, the company said Wednesday.

A decision will be made "in the very near future," said Ricky Lane, corporate communications manager in Charlotte for the company.

The Brunswick County plant employs 350 full-time employees as well as another 250 contract workers, Lane said.

Click here to read more at StarNewsOnline.com

 

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hope they clean it up

Well if they do close I hope they are forced to clean up whatever has been left behind.
Seems they have had past issues with the EPA as listed on the EPA website.
http://www.epa-echo.gov/cgi-bin/get1cReport.cgi?IDNumber=%2204-2012-2010...

I agree with vog. The timing

I agree with vog. The timing does seem impeccable. Now 600 NC citizens are going to get a taste of that good old GOP compassionate conservatism.

dak

Dak is cheap its never fixes nothing but stil they make money.yes
the infrastructure is bad on the building but also the managers
.Tey hire people with no ide how to run a machine ut won to talk rp to an employee who is trying to get it to run.They praise nxperienced oprators becausete rown nose.And tak crap to n expeinced
operator wo can run the machines becuse he dont brownnose.Then the supervisors get in their office together and ak crapabout a good operator bcause they dont like him.Is this the Gustapo or what?Dak
needs to higher more educated shif supervisors with skills and tact
toknow hw to talkto their emloyees instead of like dirt.Guess what you non skilled so called suervisors wil be looking for a job just like me.HA-HA

I hope -

I hope that you don't really talk or spell this way - that you are trying to be funny because if not - you need to go back to school to learn to write and spell correctly.

Oh, Pat!

I thought having a Republican controlled state was supposed to be attractive to business! Guess companies see the future of what's coming and are going to abandoning our state for more progressive ones like South Carolina and Mississippi.

The issue here is not the

The issue here is not the Governor or the reform bill. It's the crushing economic environment created by out of control regulators and politicians. If Suzi had a clue she'd know the problem isn't more entitlements but less government burden. More liberal entitlements mean more taxes which means weaker businesses.

Lets see

DAK Meets with Governor's staff on Monday
Governor signs the unemployment bill on Tuesday with no press invited.
DAK announces they may close the plant on Weds.
He drove a stake through the heart of SE NC. No wonder the press wasn't invited.
Face it - if this were Dalton or worse Perdue the GOP would be calling for his or her head on a platter.

Vog

Way to go

Governor.
These 600 folks from DAK and Mundy will get $350/week for LESS than 20 weeks.
Timing is everything

VOg

Business is business Vog.

When a business can't make a profit from their sevices or manufacturing, they can't pay their employees. Profits are needed to satisfy the sharholders and must come from somewhere. Downsizing and shutting factories down is a major step only after other cost reduction methods are executed.

With the explosive rate of fuel/energy costs, the explosive rate of insurance and medical care costs, what is a business to do? Operate in the red and pay employees simply to lose money?

This decision has NOTHING to do with the governor. You're speaking of the aftermath of the fundamental problem. It has more to do with the man that has been at the helm of this country for the past 4 years! Just to remind you and the rest of the readers, it is not ANY better than it was when he started. It is NOT going to get any better and prepare yourself for a ride like you've never experienced before! This is only the beginning!

Guest

The man at the helm of the country has nothing to do with DAKs closing either and I agree that things will not get better - which makes the unemployment revamping even more harmful to the states economy than it is to these folks at DAK.
Again - my discussion about the unemployment bill is not with what hey did but the timing.
The monies were not due back for 3 years - this would give corporate tax cuts time to take affect and attract jobs if that policy worked.
If the corporate tax cuts worked and people were gong back to work the amount of money paid into UI Trust by employees would increase making payback easier.
At that point you then cut benny's. It's sound fiscal policy - and protects YOUR people. The safety "net" does affect, positively, your economy.

I voted for many of these GOP people. From a political standpoint they seem to be doing everything they can to insure they won't get re-elected. No reaching across the aisle on unemployment. Hurting the unemployed. Absurd pay raise for appointees. Double the number of appointees. Removal of many experienced people from boards and commissions -to allow for political board stuffing. And this on the local level.
Look we waited 150 years for this opportunity.
We may wait another 150 years after 2016 - and the Dems will surely reverse and MAKE WORSE everything the GOP is attempting to do now.
Bev had serious budget troubles, most of it caused by a nationwide economic recession. State revenues declined precipitously - she responded. Some things were good others not so good. Unemployment went from 5.4% in Sleasleys last year to 10.8% in Bevs first year. Thats an impressive down fall but revenues declined along with it.
Now we are going to self inflict a revenue decline on the budget by removing and altering the unemployment system.
I don't disagree with the thought process here but with the timing.
Pat may be catching a falling knife with the economy - but he's making it much worse than it has to be politically.

Vog

re: Way to go

Only if they're terminated on or after July 1st Vog. Otherwise, the current rules apply.

taxpayer

I apologize if this is a duplicate post - WWAY is very slow approving posts - especially on busy news days as they only have a certain number of people allowed to approve posts.
Take a look at this:

http://hamptonroads.com/2013/02/gov-mccrory-signing-unemployment-bill-la...

And in particular:
"Federal emergency jobless benefits also will stop July 1, when the law takes effect and applies to people making jobless claims. The U.S. Department of Labor said the decision by North Carolina to refuse the extra year of benefits after six months will affect 170,000 people and hold back $780 million in weekly benefits."

It's MY understanding that anyone who is within the first 26 week period continues collecting their current rate and are not affected.
If you file after July 1 (like DAK would if it closes)
You will have LESS than 20 weeks and your benefit will be maxed at $350/week
On July 1 ALL extended benefits stop for anyone unemployed more than 26 weeks previously.

Am I wrong about that?

Vog

Taxpayer

Not quite.
If I read Rabons newsletter correctly the State UI insurance will run for 26 weeks at whatever rate they're entitled to, if they are laid off prior to July 1.
However come July 1, no one will get EUC bennys. Those currently on extensions get cut off and those that get laid off before July 1 will not be entitled.

Or - am I wrong? I asked on another blog post but don't believe I got a reply.

Vog

VOG

I guess we can take comfort in knowing you did not place the blame on former President Bush.

On another note, this type of corporate decision is not made over night. It was probably in the making prior to the election which should shift a portion of the blame to Smiley.

Not all of the affected may be out in the cold. No word yet on early retirement or buy out plans for long term employees.

Last, I am not certain, but 250 of the potential unemployed are contract laborers. I am not certain they even qualify for unemployment. I could be wrong on this point; just not that familiar.

"just not that familiar"

Most people shouldn't comment!

Clearly

you give strength to the wisdom of your statement.

Actually Tom

Can't blame Smiley either. In the news release they say the infrastructure is old.
This has nothing to do with Smiley - unless they approached her for $ for revamping the plant, and she refused, but it's my understanding they didn't.
Perhaps it was nefarious regulations but our air quality regs mimick the Feds(EPA).
Personally I believe that margins are such that to rebuild the plant it would take far too long to recoup the cost.
I would have preferred Pat to say on Monday "We are going to protect jobs by giving an incentive to DAK for rebuilding that would include hiring 50 more employees while giving them monies to improve their infrastructure, because I campaigned on working with industry to create jobs."
Of course - that's if DAK was asking for that.

It's no wonder the press wasn't invited to see pat sign the unemployment bill. The egg was still fresh on the faces.........

Vog

cheap

dak wants to shut down because they are too cheap to fix anything
But in mean time they are making profits.And the shift managers are some of the biggest dummies in the world.Have no idea how to run a machine but treat employees like dirt.Praising the brown nosers but degrading the more and experienced workforce.In the future Dak needs to hire better educated shift supervisors with higher educations and someone who has the tact to talk to people instead of getting together like a mob and saying you are a sorry worker because they dont like you

Tom

Many are long term employees so some may be less affected. the contract employees are primarily Mundy Maintenance industrial maintenance contractors. They are skilled positions paying above average wages.
In the local area they provide services to Invista (which has laid off recently, and DuPont's Fayeteville plant (which is stable but not hiring).
The whole plastics industry is struggling.
I'm NOT blaming McCrory for the closing - and you know that. Nor do I blame Smiley or Sleasley.
McCrory will get blamed for the after math which in my mind will be exacerbated by the cut to unemployment.
Most of these folks will get $350/week for less than 20 weeks with no other similar industries in the area that are hiring.
This loss of economic activity - taking $250M out of the state economy - is a self inflicted wound.
Personally I voted for many of these folks but it seems they're trying their best to lose my vote.
I'll say this. They may have just "lost" southeastern North Carolina's vote.
We shall see

Vog

Ignore the politics, here's the truth

For those wondering about the potential closure of the Leland DAK facility. It's simply economics. The Leland facility is only one of the 8 facilities DAK Americas owns. DAK originally purchased 3 Dupont facilities that were up for sale.
Keep in mind, DuPont scheduled the Leland plant was to be shut down in 2003. That's when DAK came in, slashed un-needed overhead costs and save 550 jobs. Yes, employees had to take some concessions but, they still have jobs, and the community vendors still had contracts. Over the last 3 years, DAK has invested over $1.3 billion in additional facility acquitisions, and over $26 million in the Leland facility. (to reduce variable manufacturing costs... ie, keep it market competitive)
Unfortunately, the 40+ year aged infrastructure requires massive investment over the next 5 years. When management weighs investing in the old -vs- purchasing other facilities with a smaller variable manufacturing cost... Well, it's a no-brainer.
There has been many attempts to reduce the costs at Leland however, some of the culture there simply believes they can spend-spend-spend.
In fairness to DAK, they are exploring every option to save part of te operations, even though it makes more economical sense to announce closure and hope another investor opts to purchase it.
Both Fibers and Resins is a tight market, and if your Monomers operations is not up to the Integrex level, it's hard to compete.
Hence, the reason they are investing elsewhere (regardless of the Leland closure decision)
Wouldn't you do the same?