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Kennametal will close by September in Grant. (WHNT)
GRANT, Alabama - The largest employer in Grant will close its doors by September.
Kennametal officials confirmed Thursday morning they will relocate operations in Marshall County to other North American facilities. The plant, which make rods, wear carbide, insert blanks, flow tubes and other engineered products, employs 93 workers.
Christina Sutter, spokeswoman for the Pennsylvania-based company, said the closure will allow Kennametal to "adapt our manufacturing and supply chain footprint with customers' needs and ensure the right capacity, products and services to grow profitably."
"We realize this decision adversely affects our Grant, Ala., employees," she said. "As always, we will act in good faith, with utmost respect and consideration to assist them in the transition, including benefits and outplacement services."
Job cuts are expected to begin in March. Sutter said Kennametal acquired the facility as part of its acquisition of Allegheny Technologies Incorporated (ATI) tungsten materials business in November 2013.
Employees were informed of the closure Wednesday. Matt Arnold, president and chief executive officer of the Marshall County Economic Development Council, said the news was a shock to Kennametal workers, managers and his office in Guntersville.
When Kennametal bought the plant, Arnold said he "thought there would be some real opportunity over there."
"That is a very good, well-oiled plant; they do a lot of great work," he said. "Apparently, this is a corporate decision. They decided to downside and consolidate -- there's not much you can do about that."
Until Wednesday, Arnold said the economy was improving in Grant with the opening of a new 11,900-square-foot Wal-Mart Neighborhood Market across from Hardee's. He said the town's Cathedral Caverns State Park also experienced a banner year for tourism in 2014.
Arnold said he feels confident Kennametal's skilled machinists and CNC operators will find work at existing industries in Marshall County or in outlying cities. He said there are at least half a dozen companies in the area hiring for those positions, but Kennametal workers may have to travel.
"For folks who are used to living in Grant and not having to get off the mountain to go to work, it might be a culture shock," he said.
Last week, Daikin Industries announced it will shutter Goodman plants in Fayetteville and Dayton, Tenn., by 2017 as it moves manufacturing and logistics operations to a new $417 million campus outside of Houston. The closures will affect 1,500-1,800 workers in Fayetteville and 300 in Dayton.
Nearly one year ago, Marshall County lost a major chicken processing plant after Pilgrim's Pride decided to consolidate operations in Russellville and Douglas, Ga., to absorb the Boaz processing facility. The now-vacant facility employed more than 1,000 workers.
Arnold said the Kennametal facility will be easier to market than the Pilgrim's Pride building.
"You can't do much with that building aside from food processing and poultry," he said. "(The Kennametal) building is a good, solid, industrial building. I don't think we'll have any trouble selling it."