Labinal Power Systems Shifts Portions of Operations to Denton, Texas
Salisbury, Maryland Plant to Close by December 2016
Dallas, January 14, 2015
Labinal Power Systems (LPS) announces plans to transfer operations from their Salisbury, Maryland plant to its Denton, Texas location, resulting in the Salisbury plant closure by Dec. 31, 2016. LPS will systematically move operations from Salisbury to Denton beginning May 2015.
“In order to maintain our competitive position in the aerospace industry, we must restructure our North America operations and consolidate our wire manufacturing business into one U.S. facility,” said Jorge Ortega, Vice President, Labinal Power Systems North America.
Salisbury employees will receive transition packages, job training support and other transition-related assistance. Job counselors and educational specialists will be on site to offer assistance. This operational transfer will result in job growth at the Denton plant.
“We are extremely grateful to our employees,” said Tony Rodriguez, General Manager, Labinal Power Systems, Salisbury. “We also appreciate the years of support we have received from the Salisbury community.”
Originally posted at 10:00 AM 1-14-15
53 comments:
Whoa...My guess is this will be the most popular post of the week. Let the comments begin.
You must be so proud of yourself former Mayor Tilghman and current Mayor Ireton.
Your LIBERAL leaders have literally destroyed Salisbury and Wicomico County. It's no wonder Ireton is begging the County foot the bill for the Fire Department.
I know Jimmy, build yet another new Fire Palace. Hey, give away a few more TIFS and I know, how about we build new subsidized housing units on the parking lots Downtown.
Yeah, you guys are my HERO's, that's for sure. I just LOVE watching life long government scum suckers destroy America bit by bit, NOT!
If you people are wondering just how difficult it's going to be in Governor Hogan and County Executive Bob Culver, think how bad it's going to be for the next Mayor of Salisbury, especially if you elect yet another Liberal!
Is this the factory over by the Civic Center?
How many employees work there?
10:24, I'm working on that right now, waiting for a reply from their main office.
I know, we can sell building to Gillis for $15,000 and then convert it to Section 8 housing!
Under competent leadership which does NOT include ANY democrats -from the local on up to the state level-, we would be reading:
"Labinal Power Systems Shifts Portions of Operations to Salisbury, Maryland
Denton, Texas Plant to Close by December 2016"
I hope jimmy runs again bc we are going to DESTROY him and his libturd college turds.
Yep this town is so currupt.
"Grumann became Harvard Custom Manufacturing then Safran Labinal. Employees about 1000 employees currently. Not exactly shut down"
This comment, from this blog, was from Sept 3, 2012, from a post of the same date titled "O'Malley Distorts Job Generation Record."
As a spouse of an employee who works there. And works SO many hours, I am SICK and Angry!
If it's true it will definitely hurt Salisbury.I guess our leaders will have to bring more government jobs and tax us into oblivion.
The Mayor isn't trying to get money for any fire palace part 2 or more paid firemen.The County paying for Salisbury to protect portions of the county is nothing new. It's been going on for many years. For years it was done at the end of the year on a per call basis It emerged several years ago as a lump sum and that's what has brought us to this point. Services in the Salisbury fire district within the county has grown 10 fold. This is because of the influx of new housing developments and other usage. Each fire company in the county receives the same amount regardless of the amount of calls handled. That's the real inequity. Powellville that handles 100 calls year vs. Salisbury who handles 12,000. Neither the City or County is financially well, but are pressed to provide fire and EMS services. Both sides need to figure out an equitable solution. Businesses like this pick up and move away all the time. They can't be to important because I didn't even know who they were when you listed them.
If you want a job in manufacturing, you better move south. Virginia, South Carolina, and Texas are adding businesses and jobs. Maryland is losing jobs left and right. If not for State and Federal jobs, this state wouldn't have any jobs.
My father has been there since it was Grumman as have lots of his coworkers (26 years?). Not only is this a huge blow to our family, but to our city as well. Praying for all of the families. And I think this is what will pull the plug between our family and MD. My parents plan to move out of state after this - and I think I'll come with!
Texas, here I come. And no state income tax!
If you want an answer as the reason for this move, just look at the difference in corp. taxes in each location. Maryland is taxing businesses out of state
NOW the mayor can turn the empty building into liw income shelters or a drug rehab For ECI.
Didn't they just receive some sort of tax break? It may have been a few months ago- but, they knew then they were leaving- employees have known for some time
Hoping some of these employees will be able to move with the company to Texas. Hoping the ones unable to move will be able to find work soon after their job is complete with this company, even if they need to make a move to another area, hopefully, safer than Salisbury.
Wishing these employees, and their families, much success in whatever their future holds.
10:28 you are an idiot. Get off your parents couch and go get a job you loser.
They lied to us. Simple as that. What are all 700 some of us going to do? Only a matter of time before Denton Texas plant closes as well and moves to Mexico, where wages are PENNIES. Thus company has no conscience
Bull. Call volume has everything to do with funding.
I'd rather have them all in one location then all over the city, if you call salisbury that.
Perhaps the Mexican labor force in Tehas will work for peanuts.
11:55 you are an IDIOT. I am not on their couch. I have a child and nothing is more important than FAMILY. I've always planned to move south myself, hoping they would come with so we would all be together. I have a job and am in school full time, and not on a DIME of their money. But that's awful nice of you to call people names when you don't know their situation.
11:17 said "They can't be to important because I didn't even know who they were when you listed them."
You must not be important or very informed if you don't think a company that employs over 500 people is important.
11:55 I don't understand your problem with 10:28s comment. I thought it was funny. Maybe you are the loser.
Try googling "sarcasm". What a tool.
I swear - this area has been decimated with job losses. For crying out loud, how much more evidence does it take to admit - we are in deep sh. . . t. Don't our elected officials realize that there is a direct correlation with jobs + income taxes = local revenue growth.
As a lifelong resident of Wicomico County my wife and I are seriously considering moving out of here. There is nothing left - nada manufacturing.
ought from ought = naught
Month after month I see the local job numbers. My wife and I were just talking about this very same subject this morning. And now this latest announcement and setback.
I hope everyone is holding onto their hip pocket because we are about to get blindsided come real estate tax collection time.
Won't find much solace from me, I have seen this train wreck manifesting for several years. Better strap on your seat belt folks, it ain't pretty.
Joe, thanks for keeping us posted. What a shame. I feel sorry for the unfortunate families that have been affected from the closure of this business.
My heart goes out to these people. So sorry, especially right after Christmas.
so sad for Salisbury. Hope Pollitt is proud of his legacy. Lots of fluff and no substance. Same for council who supported him - Matt Holloway, John Hall, Stevie Prettyman, Sample-Hughes. Shame on all of you and the financial guru Strousburg - doesn't seem too smart either.
Where is Janet Dudley Eshbach & the Beacon group when you need them.
I'm not so sure all this is the mayors fault I mean when Labinal bought out Harvard they started some shady ass practices and almost seemed like they wanted to run the Salisbury plant into the ground like the airplanes they wire. They wanted to hire nothing but foreigners and push the people who made over 10 bucks an hour out. If they didn't have a reason to fire you they made one up. I say good to have them gone it sucks that locals are going to lose their jobs.... That part is horrible, but they were a greedy company that sh!t on their employees and did so with a smile. They wanted to run that branch into the ground well you got your wish. They heard the threat of a union moving into their business a few years back and it scared them. So they took their business out of Salisbury.
I remember when Rick Perry (Texas Governor) came to Maryland seeking to entice MD businesses to move to Texas.
'In Texas we Pray for Rain - In Maryland they Tax It'
Do I need to say anymore?
The Mayor is as much to blame as anyone. He is so used to receiving handouts that he has no clue as to how to entice businesses. A lot of these closures and moves can be directly attributed to his failed economic development policies. Right - 7:50 Poster Ireton was always an advocate for implementation of the Rain Tax. You reap what you sow - and Ireton is now getting his just due.
This is what voting democrat will do.
I'll never vote for a Democrat ever. And that goes for the RINOs too.
The Bury's economy was much better in the 1960s. At least we had a thriving downtown back then. JC Woolworth's, Benjamins, White & Leonard, Lad-n-Lassie, Castleberg's, Thurston & Young, Read's, First National, Ralph & Gaskel, on and on.
Now all we have are memories of a by-gone era. Nothing but homeless, foreclosures, and vacant warehouses.
Why are there so many businesses folding? Seems as though every business that locates here soon uproots and either closes or moves away. What is happening?
I cannot recall our economy ever being this bad. I have lived in the 50s, 60s, 70s, . . . 90s . . 2000. . 2010 all the way to present. This is the worse economy ever. America has gone to the dogs.
Corporate welfare fraud, when it comes right down to it.
So they took millions from the state of Maryland, under what pretense? Was there any "agreement" or conditions upon the grant? How did they come across such a windfall, surely they had to apply for a grant, and provide some type of justification or proposal?
I would be surprised if Texas didn't offer them millions to relocate there, as well. Bringing all those jobs! I guess $10/hour jobs here, weren't cheap enough for them.
Taking money to do business in Maryland, then taking that money to Texas, is stealing from the taxpayers, and even worse if they took "incentives" from Texas as well.
But who can, or will hold them accountable?
This is what happens when you are a foreign owned company. The corporation has no stake in the community nor the employees. We are all just numbers and trust me when I say that's what they are all about. If you work there you know it's all about metric reports and not about the people.
60 days written notice is what we will receive but only because federal law requires it. In the meantime it's a waiting game. Leave before your WARN letter and you get nothing. Wait and you get a severance package (sad package but every bit helps at this point). We all are now stuck in limbo unable to leave because we NEED our severance pay. Yet we know we need to find employment elsewhere but can't afford to do so until we no longer have a job.
They all took millions - Obama awarded millions to all his contributors, Solindra, Evergreen, A123, GE subsidiaries. They all folded and we the taxpayers are left holding the bag.
When in the heck are you going to wake-up?
David Ryan needs to resign also.He has sat back for years watching the city fall to pieces in turn collecting a awesome sum of money for doing it.He is part of the Parker,Mackes and Sarbanes gone by domain.No economic development here anymore just sad faces and empty pockets.
The employees must also report the severance package as income and won't be able to collect unemployment for a period of time.
The rest of the country is doing much better than the Eastern Shore. What does it come down to? Maryland's business practices BUT PRIMARILY the lack of leadership and VISION from those elected (and who they appoint) in Wicomico County. All Pollitt did was ask Memo to do studies. These people just passed our taxpayer money around among their buddies. Culver was elected to fix the problem. He needs to FIRE his entire Executive office staff and start over. Fixing Finance and Public Works barely scratches the surface. Strousberg is a BS-artist and needs to be sent out of town packing. What has he done to improve the life of anyone in Wicomico County except his "friends". And Sharon Morris - what does she even do? It is like she is a ghost - never hear a thing about her. They certainly aren't earning their salaries from what I can see. If Culver doesn't wake up and get it done, then he was a bad choice against a really bad choice. Can Dave Ryan and hire a real economic development person. This is not rocket science, it just takes guts to make the changes.
I am from Salisbury and I still have family there. After graduation from SU I relocated to Anne Arindel County. There are a lot of jobs and businesses that are thriving and rapidly expanding. It's sad to say but coming home to visit family here is depressing. The city is starting to look like Detroit. If it wasn't for the college and the beach goers in the summer this town really would be done.
The mackes empire was built with fall guys all around him in which many are still there and he is gone.And they are still polishing that seat looking at he computer screen for guidance from the next dummy above.
If you don't have good military training or police training , you are gone ,you will not survive .
It's going to get real nasty soon.
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