Firestone Announces EPDM Plant Consolidation
Firestone Building Products Company (FSBP) announced it will close its
manufacturing plant in Kingstree, S.C. in mid-2011, consolidating all production of EPDM
(Ethylene Propylene Diene Monomer) roofing membrane into its larger facility in
Prescott, Ark.
INDIANAPOLIS – Firestone Building Products Company (FSBP) announced it will close its manufacturing plant in Kingstree, S.C. in mid-2011, consolidating all production of EPDM (Ethylene Propylene Diene Monomer) roofing membrane into its larger facility in Prescott, Ark. This decision affects 190 teammates in Kingstree and will result in 100 new jobs in Prescott.
“While this is very difficult news for our teammates in Kingstree, we know that consolidating these two facilities and maximizing our EPDM production in Prescott is the right decision for our company in the current economic climate,” said Ken Weaver, President, FSBP and Chairman, CEO and President of Firestone Diversified Products. “We simply have more EPDM capacity between the two locations than current market conditions can absorb.”
Last fall, FSBP executives began meeting with government officials in Arkansas and South Carolina to discuss possible EPDM consolidation between the company’s two facilities. After reviewing highly-competitive proposals from both South Carolina and Arkansas and factoring in related costs due to product mix and equipment relocation, FSBP made the difficult decision to close the Kingstree plant in mid-2011, and consolidate that production into the Prescott facility.
“This was an extremely tough decision to make, as our teammates’ performance in Kingstree has always been strong and the government and community leaders in South Carolina have been most supportive of our efforts,” Weaver stated. “However, with both operations running reduced shifts, neither plant is operating cost-effectively. In combination with productivity improvements, our proactive efforts have not sufficiently realigned production capacity with overall demand.”
Company officials notified teammates in Kingstree and Prescott of the decision today. The Kingstree plant will go through a gradual operations phase down to ensure there is no interruption to customers during this transition. While no official plant closure date has been finalized, FSBP anticipates plant operations will cease around July 1, 2011.
Based on industry shipment data, the U.S. roofing market unit volume dropped 27 percent during the first full year of the recession in 2009. In 2010, unit volume rebounded 7 percent from 2009 levels, but new building construction has had little growth, impacting overall demand. Industry forecasts indicate sluggish growth in the near term.
“We are grateful to both the Arkansas and South Carolina government agencies for their generous assistance, as we examined every alternative during this decision process,” Weaver stated. “We also want to thank our union leadership in Prescott for their efforts, as well.” FSBP purchased the Kingstree plant in 1994 from MA Hanna Colonial Rubber. The facility currently employs 190 teammates. The Prescott facility currently employs more than 400, and has been in operation for 40 years.
INDIANAPOLIS – Firestone Building Products Company (FSBP) announced it will close its manufacturing plant in Kingstree, S.C. in mid-2011, consolidating all production of EPDM (Ethylene Propylene Diene Monomer) roofing membrane into its larger facility in Prescott, Ark. This decision affects 190 teammates in Kingstree and will result in 100 new jobs in Prescott.
“While this is very difficult news for our teammates in Kingstree, we know that consolidating these two facilities and maximizing our EPDM production in Prescott is the right decision for our company in the current economic climate,” said Ken Weaver, President, FSBP and Chairman, CEO and President of Firestone Diversified Products. “We simply have more EPDM capacity between the two locations than current market conditions can absorb.”
Last fall, FSBP executives began meeting with government officials in Arkansas and South Carolina to discuss possible EPDM consolidation between the company’s two facilities. After reviewing highly-competitive proposals from both South Carolina and Arkansas and factoring in related costs due to product mix and equipment relocation, FSBP made the difficult decision to close the Kingstree plant in mid-2011, and consolidate that production into the Prescott facility.
“This was an extremely tough decision to make, as our teammates’ performance in Kingstree has always been strong and the government and community leaders in South Carolina have been most supportive of our efforts,” Weaver stated. “However, with both operations running reduced shifts, neither plant is operating cost-effectively. In combination with productivity improvements, our proactive efforts have not sufficiently realigned production capacity with overall demand.”
Company officials notified teammates in Kingstree and Prescott of the decision today. The Kingstree plant will go through a gradual operations phase down to ensure there is no interruption to customers during this transition. While no official plant closure date has been finalized, FSBP anticipates plant operations will cease around July 1, 2011.
Based on industry shipment data, the U.S. roofing market unit volume dropped 27 percent during the first full year of the recession in 2009. In 2010, unit volume rebounded 7 percent from 2009 levels, but new building construction has had little growth, impacting overall demand. Industry forecasts indicate sluggish growth in the near term.
“We are grateful to both the Arkansas and South Carolina government agencies for their generous assistance, as we examined every alternative during this decision process,” Weaver stated. “We also want to thank our union leadership in Prescott for their efforts, as well.” FSBP purchased the Kingstree plant in 1994 from MA Hanna Colonial Rubber. The facility currently employs 190 teammates. The Prescott facility currently employs more than 400, and has been in operation for 40 years.
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