Wisconsin-based Bemis Co. Inc. announced Monday that it will close its MACtac Pressure Sensitive Materials manufacturing plant in Stow in May.
The plant workforce includes approximately 115 employees. The facility at 4560 Darrow Road primarily manufactures solvent-based pressure sensitive materials.
The MACtac headquarters will remain in Stow, according to the announcement.
"We are grateful that Bemis has assured us that the approximately 160 employees at MACtac's corporate headquarters will be remaining," said Mayor Sara Drew.
"We are certainly sorry to see the manufacturing side go, but glad the corporate headquarters is remaining," said Economic Development Director Ken Trenner.
Drew said she had only just found out that the plant would be closing.
"This is the first time we had heard of it when I received the call from Bemis this morning," said Drew.
The announcement said the company recognizes that these changes will have "a significant impact" on employees and their families and intends to offer transition services to affected employees to aid in their search for new employment.
Drew said the city would also do what it can by helping employees connect with The Job Center, an Akron agency that houses about a dozen workforce service providers.
"This is an unfolding situation and obviously all of our thoughts go to the employees who will be losing their jobs," she said.
The company said it expects this plant closure to improve its market competitiveness and to better position its business for long-term growth.
Drew said city officials were still trying to get a handle on what the financial impact will be in terms of lost employee withholding and company income tax revenue.
"Clearly the loss of 115 jobs is a significant impact," she said.
The press release said the "manufacturing facility recorded 2013 annual net sales of approximately $45 million. In 2014, the company will record a pre-tax charge related to the plant closure of approximately $30 million which includes estimated costs related to the settlement of a multi-employer pension liability, employee severance and benefit costs, and fixed asset related costs."
MACtac started in 1959 as the Morgan Adhesives Co., a joint venture between Bemis and MACtac's founder, Burton Morgan. Its products are used in the printing, graphic design, packaging, digital imaging, photography, assembly engineering, and communications industries.
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