Glassware maker Libbey Inc. is to move two production lines from a soon-to-be-closed plant in California to a plant in the firm“s base of Toledo, Ohio, where it will make an investment of USD 10 mill…
Glassware maker Libbey Inc. is to move two production lines from a soon-to-be-closed plant in California to a plant in the firm“s base of Toledo, Ohio, where it will make an investment of USD 10 million to USD 15 million and add 25 to 50 jobs. An incentive package, worth at least USD 2.4 million, was put together to obtain the work for Toledo, as Libbey announced the closing of its City of Industry, California, plant on 16 August 2004. When the closure was announced, Libbey said some drinking glass production would be moved from the City of Industry plant to its other US facilities. Kenneth Boerger, company vice president and treasurer, said 10 September 2004 that the incentive package tipped the scales for Toledo. The plant expansion will begin in autumn 2004 and the new production lines should be operating by spring 2004, he said. No new buildings will be constructed. The lines will produce glass tableware and other products. The new jobs will be unionized, and the majority of the workers will be hired locally, although some California workers could transfer. The pay was not disclosed, although the rate for Libbey production workers are around about USD 15 an hour. Libbey said it would close its 200-employee factory in California because work at the plant had slowed and also to consolidate its US manufacturing operations. At the same time as the closure announcement, Libbey announced plans to build a factory in China. Libbey CEO John Meier said the work would be moved either to Toledo or to its Shreveport, Louisiana, plant or divided between the two. Toledo Mayor Jack Ford said 10 September 2004 that the city was competing not only with Shreveport, but also with sites in Mexico, China, and the Netherlands. “It“s amazing how competitive the market is out there for each and every job,” he said. As part of the incentive package, Libbey will have an enterprise zone tax exemption from the city of Toledo worth USD 1.7 million over 15 years, plus an inventory tax exemption. The city also promised to provide road, sewer, or other improvements based on the firm“s final plan for expanding its plant. Columbia Gas of Ohio agreed to offer Libbey a lower rate on natural gas. The state of Ohio is to provide a USD 750,000 grant to train workers for the new jobs. Those funds were key to securing the plant, said Eileen Granata, acting chief operating officer of Toledo“s Regional Growth Partnership.