Firestone Delivers Notice of Planned Factory Closure

Notification of the planned closure of a US Firestone factory producing automotive and industrial air springs was given to union representatives in June 27. The Firestone Industrial Products Company (FSIP) delivered a “Notice of Potential Plant Closure” for its Noblesville, Indiana facility to representatives of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW). In the notice, the company stated that the air springs market is increasingly global, making it difficult for FSIP to compete. Although no final decision has been made, the company advised the USW of the possible closure of the facility due to the losses being incurred at the Noblesville plant.

With delivery of the notice to the USW, the company also expressed its willingness to enter into good faith negotiations with union representatives regarding the potential plant closure. According to the notice, FSIP now has six months to discuss these issues with the union. If, after good faith negotiations, the decision is made to close the plant, the closure would occur sometime in 2009, but an actual date has yet to be determined.

“We have a difficult challenge in Noblesville,” said FSIP president Mike Cerio. “Our main competitors are manufacturing in low-cost producing countries, making it very difficult for FSIP to continue to operate this facility, one which is hampered by aging equipment, the world’s highest wage and benefit structure and a mature domestic market.

“International markets for air springs are growing, while the US market is mature, providing very limited opportunity for growth,” continued Cerio. “High manufacturing and logistics costs prohibit us from exporting our products from this facility into these emerging markets. Meanwhile, imports from lower-cost manufacturers abroad are gaining ground in the US Even with substantial new capital investment, market forces make it extremely difficult for the Noblesville plant to be globally competitive.”

The Noblesville plant began operations in 1936 and produces air springs for both OEM and aftermarket customers. The facility employs about 300 workers.

“This has been a very difficult announcement to make, especially in light of our 72 years’ presence in Noblesville,” said Cerio. “The step we announced today was taken only after serious consideration of our alternatives. The appropriate union officials, as well as government and community leaders, have been contacted to explain the situation at the plant. We have held and are continuing to hold meetings with our plant team-mates as well.”