Olin/Winchester moving operations to Mississippi
Olin Moves Winchester Operations from Illinois to Mississippi
Olin Corp. (NYSE: OLN) has announced that its Winchester centerfire operations and approximately 1,000 jobs will be relocated to Oxford, Mississippi (Lafayette County). The company's decision follows two failed ratification votes by members of the International Association of Machinists and Aerospace Workers, in which employees twice rejected a union proposal that would have allowed Centerfire Operations to remain in East Alton, Illinois. The company informed the unions in August that it was considering relocating operations to Oxford to enhance the competitiveness of its operations. The company engaged in discussions with union leaders over the past two months, but Olin's final offers were rejected, so Olin decided to move its operations down South.
Olin's relocation decision was influenced by an incentive package offered by Mississippi Gov. Haley Barbour. According to Business Week, the Mississippi State Development Authority will give Lafayette County $25,000,000 "to build a new 500,000-square-foot building for Olin." The new publicly-owned Olin plant will be built near the current Winchester facility in Oxford. Lafayette County is also "providing the site and site preparation work."
From Bloomberg Businessweek as submitted by The Associated Press
Olin moving East Alton, Ill., plant to Mississippi
EAST ALTON, Ill.
Despite the urging of two federal lawmakers, Olin Corp. says it is moving an ammunition plant and 1,000 jobs from Illinois to Mississippi.
The Clayton, Mo.-based Olin said Wednesday that its Winchester Centerfire Operations in East Alton will be relocated to Oxford, Miss.
The move was opposed by Democratic Sen. Dick Durbin and Rep. Jerry Costello, who wrote a letter in August to Olin President and CEO Joseph Rupp.
In the letter, the legislators said they had worked hard on Capitol Hill to help Olin get sizable government contracts. Those deals included supplying Winchester munitions to the Army and a $54 million deal the lawmakers called "the largest ammunition contract in the history of federal law enforcement."
The relocation is expected to take place over several years.
Rupp said in a statement that Mississippi Gov. Haley Barbour and the state "stepped forward with significant incentives."
Rupp said Mississippi offered an undisclosed amount of incentives to attract Olin, which announced in August it could save $30 million by moving its Centerfire operations to Oxford.
Part of the incentives package includes the Mississippi Development Authority providing Lafayette County with $25 million through the Mississippi Industry Incentive Financing Revolving Fund to build a new 500,000-square-foot building for Olin. It will be next to the current Winchester facility in Oxford and will be publicly owned. The county also is providing the site and site preparation work.
Barbour, in a statement issued by the MDA, said Olin will invest about $100 million to create 1,000 new jobs over the next five years.
"Having a business climate where existing operations can expand and new industries can thrive is a point of pride for all Mississippians." said Barbour.
MDA spokeswoman Sally Williams said a memorandum of understanding between the state and Olin is in the works, and details of the lease agreement have not been worked out, she said. It's not clear when the hiring process will start.
Max Hipp, president and CEO of the Oxford/Lafayette County Economic Development Foundation, said the decision "demonstrates Olin-Winchester's confidence in our community and reflects positively on our area's work force."
"Those jobs will (create) a lot of indirect jobs, a lot of good payroll," said Hipp.
Olin Corp. (NYSE: OLN) has announced that its Winchester centerfire operations and approximately 1,000 jobs will be relocated to Oxford, Mississippi (Lafayette County). The company's decision follows two failed ratification votes by members of the International Association of Machinists and Aerospace Workers, in which employees twice rejected a union proposal that would have allowed Centerfire Operations to remain in East Alton, Illinois. The company informed the unions in August that it was considering relocating operations to Oxford to enhance the competitiveness of its operations. The company engaged in discussions with union leaders over the past two months, but Olin's final offers were rejected, so Olin decided to move its operations down South.
Olin's relocation decision was influenced by an incentive package offered by Mississippi Gov. Haley Barbour. According to Business Week, the Mississippi State Development Authority will give Lafayette County $25,000,000 "to build a new 500,000-square-foot building for Olin." The new publicly-owned Olin plant will be built near the current Winchester facility in Oxford. Lafayette County is also "providing the site and site preparation work."
From Bloomberg Businessweek as submitted by The Associated Press
Olin moving East Alton, Ill., plant to Mississippi
EAST ALTON, Ill.
Despite the urging of two federal lawmakers, Olin Corp. says it is moving an ammunition plant and 1,000 jobs from Illinois to Mississippi.
The Clayton, Mo.-based Olin said Wednesday that its Winchester Centerfire Operations in East Alton will be relocated to Oxford, Miss.
The move was opposed by Democratic Sen. Dick Durbin and Rep. Jerry Costello, who wrote a letter in August to Olin President and CEO Joseph Rupp.
In the letter, the legislators said they had worked hard on Capitol Hill to help Olin get sizable government contracts. Those deals included supplying Winchester munitions to the Army and a $54 million deal the lawmakers called "the largest ammunition contract in the history of federal law enforcement."
The relocation is expected to take place over several years.
Rupp said in a statement that Mississippi Gov. Haley Barbour and the state "stepped forward with significant incentives."
Rupp said Mississippi offered an undisclosed amount of incentives to attract Olin, which announced in August it could save $30 million by moving its Centerfire operations to Oxford.
Part of the incentives package includes the Mississippi Development Authority providing Lafayette County with $25 million through the Mississippi Industry Incentive Financing Revolving Fund to build a new 500,000-square-foot building for Olin. It will be next to the current Winchester facility in Oxford and will be publicly owned. The county also is providing the site and site preparation work.
Barbour, in a statement issued by the MDA, said Olin will invest about $100 million to create 1,000 new jobs over the next five years.
"Having a business climate where existing operations can expand and new industries can thrive is a point of pride for all Mississippians." said Barbour.
MDA spokeswoman Sally Williams said a memorandum of understanding between the state and Olin is in the works, and details of the lease agreement have not been worked out, she said. It's not clear when the hiring process will start.
Max Hipp, president and CEO of the Oxford/Lafayette County Economic Development Foundation, said the decision "demonstrates Olin-Winchester's confidence in our community and reflects positively on our area's work force."
"Those jobs will (create) a lot of indirect jobs, a lot of good payroll," said Hipp.
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Living in Illinois sucks badly enough, now ANOTHER gunmaker/ammunition supplier is leaving the state...congratulations corrupt Illinois lawmakers! If Illinois had offered ANYTHING like what Barbour did, they might have stayed. I assume Pat Quinn would rather see that money liquid so he can funnel it off to his cronies for their own , selfish needs and those of their liberal, corrupt families...swear to you, the majority arerelated to SOMEBODY here. Remember Blagojevic? He was married into the Mell family; proven to be some of the most corrupt of all Chicago fixtures. Woe be unto the state...this is the beginning of the end for those crooked strokes I hope! At least we are rid of "Rain Man" (Ritchie Daley, for those of you who have never heard him speak) 0 -
Its just what they want and unchecked they will run all the business out of your state. Here in California they have already driven most of the high paying job out so they can get their pound of fresh air.
Emmett0 -
Actually the State of Illinois had nothing to do with this move for a change. The union shot themselves in the foot. They forgot this is not 1950 and they are no longer able to hold business hostage to get what they think they deserve. The company moved to an area with lower labor costs and no union. I was a union member for many years. The unions were done for when the union became more important to them than the union members. 0 -
quote:Originally posted by slumlord44
Actually the State of Illinois had nothing to do with this move for a change. The union shot themselves in the foot. They forgot this is not 1950 and they are no longer able to hold business hostage to get what they think they deserve. The company moved to an area with lower labor costs and no union. I was a union member for many years. The unions were done for when the union became more important to them than the union members.
Ditto! The sad part is that the "Unions" in this country can no longer see what they are doing unto themselves.0 -
Well :
As said , its as much the idiots fault that run (ruin) Illinois !!!
I worked for Olin/Winchester back in the early 80's as a 'gunnery tec' (gunsmith) , in Southern Illinois ... We had a union , and it sucked !
But the way of things in good ole Illinazi , this is bout power for the course , I moved away , and have never looked back !!!
Seriously !!!
d.a.stearns......................a.k.a............SKEEZIX...
Gunsmith / LEO
Athens , Tn
www.allamericangunshop.com0 -
Wife's job is entirely too important as she is the real bread winner and I am employed part time and am day-care for our little ones; a much better job than the one I left! If it were possoble, or her job was about 20 miles closer to Wi., I would be there in a heart-beat, TRUST ME!!! At least they got Walker up there now; things should really start to blossom in favor of constitutional adherance.
I will agree that the unions have shot themselves ( and of course their rank and file) in the foot. There are so few unions left that have a real raison d'etre; God knows I don't miss being a Teemster. I cannot agree, however, that Illinois 'had nothing to do with it'. While the overwinning reason likely IS the labor cost, it is hard to ignore the tax discounts and state supplied incentives that Illinois would not offer. Couple that with the UTTERLY hostile environment toward gun related companies here, at least in northern Illinois, and you have a recipe for jobs 'going down the road'. We gained nothing in comparison to Wisconsin and several other states near us in terms of 2nd amendment gains...the road forward looks somewhat bleak. I have never hoped my wifes job would relocate...til now.0 -
quote:Originally posted by slumlord44
Actually the State of Illinois had nothing to do with this move for a change. The union shot themselves in the foot. They forgot this is not 1950 and they are no longer able to hold business hostage to get what they think they deserve. The company moved to an area with lower labor costs and no union. I was a union member for many years. The unions were done for when the union became more important to them than the union members.
I work for that same union that shot themselves in the foot...just another company, in a different state. That was also the same union that was employed at New Haven. I do agree with almost everything you said, and that the unions need to concentrate on their members. However, there is more and more corperate greed(there is no reason that CEO pay should be 100's or 1000's of times higher than the grunts putting the bread and butter on his table) going on these days, and that includes the union into that corperate corruption deal. As a matter of fact the corruption goes all the way to Washington D.C. and the legislators who make the laws of our land, for not making laws and taxes high enough for imports, so to prevent out jobs from being taken out of country.
Best0 -
Its a shame for the workers that lost out. 0 -
quote:Originally posted by wpage
Its a shame for the workers that lost out.
That is very true, but my bet is that a fair number of them follow the company south.0 -
Good point...anyone know if they are offerring relocation to any/some/all of the workers? I wonder what the company's stance would be on rehiring members, former or otherwise, of the union that forced them into the relocation? The unions can't persist at the current rate of stupidity the commit; as said earlier, we will become a society that produces nothing of merit other than "great customer service"... oh wait, that's India. 0 -
The T.V. crew reported that they would offer jobs if they moved but no "guarantee" you would get the job if you came down,,,however that works. Teh reports were that the union had given up wages and insurance benefits but Olin said it wasn't enough.. My wonder is that no matter what the union gave up that they were LEAVING the state of Illinois anyway..[B)] Both sided lose imo.. 0 -
10 or 15 years ago, a major truck manufacturer moved to SC from Pa. (probably to get away from union influence)..A few of the union workers came south with the compny..The state of SC gave 10 yrs. of tax breaks etc... the union guys organized and the union was voted into the SC plant...When 10 yrs. expired..The plant closed...Apparently they couldn't be profitable enough to remain union...so they shut down the plant....So it goes..Corporate greed vs union greed...Which is worse????/ unanswered question 0
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