A Lorain metal shop where work started in 1919 will close its doors by mid-July, eliminating 35 jobs.
Johnson Metall Inc. on May 26 announced this summer it will discontinue all manufacturing operations at its Lorain facility, 1305 Oberlin Ave. The plant is the Swedish-owned company’s only U.S. facility and it has 35 full-time employees.
‘Unfortunately, there simply is not enough business to keep this plant open,’ said Ron Bellottie, president of U.S. operations for Johnson Metall. Bellottie spoke as part of a written statement published by the company.
‘Most recently, we’ve manufactured parts for wind turbines, and then the oil and gas industry,’ he said. ‘With the decline in both of those industries, and the lack of profitable replacement work, we have seen a significant decline in customer orders and are running the facility at a loss.’
Johnson Metall will begin negotiating terms of the closure with the two bargaining units that represent employees, Local 962 of the United Steelworkers and Local 45B of the Glass Molders Plastics Union.
‘We spoke today with union leadership and will work with them to determine what we can offer to our employees,’ Bellottie said. ‘We know this will be difficult for our workers, most of whom have been with us for decades.
‘We appreciate their loyalty and hard work over the years,’ he said. ‘We have a skilled work force and will do what we can to help them find new positions.’
The news was disappointing but not necessarily surprising given the current economy for suppliers of parts used in oil and gas exploration, said Lorain Mayor Chase Ritenauer. He cited United States Steel Corp.’s Lorain Tubular Operations as another local example of a business fighting the tide of the global economy.
‘I think it again shows global economics at work, unfortunately,’ Ritenauer said about Johnson Metall. The company has adjusted its workforce over time, Ritenauer said, citing a May 26 discussion with a company representative.
‘But ultimately, with orders not coming in because of oil and gas prices being so low, we’ve seen it affect some of our larger companies,’ Ritenauer said. ‘Unfortunately it’s hurting some of our smaller and mid-size companies as well.
‘We’re just hopeful that we can get through this sooner rather than later,’ he said.
Bellottie, who began work on the plant floor more than 40 years ago, said plans are in place to ensure a smooth transition for customers. Johnson Metall’s products are primarily used in construction, forestry, marine, metal, wind energy and industrial applications, according to the company.
Johnson Metall also will begin talks with the City of Lorain about how the property on Oberlin Avenue might be used, Bellottie said.
The property was recently evaluated under the Voluntary Action Program of the Ohio Environmental Protection Agency and required only minor remediation, which has been completed. The property is thus suitable for reuse or repurposing.
The Johnson Metall facility houses both a foundry and a machine shop.
The plant in Lorain began production in 1919 as American Crucible Products, manufacturing sand castings of copper alloys and centrifugal castings in brass and other alloys.
The company later changed its focus to produce centrifugal castings in brass and bronze. At one time, the company operated under the name BecoTek Mfg. Inc., and was the leading integrated manufacturer and supplier of brass cages to the ball and roller bearing industry worldwide.
Johnson Metall acquired the Lorain facility in 1990, when there were well over 100 employees working there, according to the company.
