O-I Glass is closing a plant in Streator, Illinois, and idling its innovation center in Perrysburg, Ohio, where the company is headquartered, according to local news reports.
Shaw Local reported that the Streator factory will cease commercial operations on or after Nov. 18, impacting 152 employees, some of whom are represented by United Steelworkers unions. Streator is one of 17 total United States locations listed in O-I’s Americas segment.
O-I Glass has teased multiple furnace closures since new CEO Gordon Hardie announced a “competitiveness” program, dubbed Fit to Win, which involves footprint optimization. At the end of July, Hardie said six furnace closures would happen over the next three quarters, representing about 4% of O-I’s capacity. However, the company had not shared specifics about locations.
The company has shared updates in a series of securities filings this fall, including one late Tuesday. O-I said it finalized plans to close a furnace in the Americas segment. The date and number of workers impacted that O-I specified are consistent with the Streator report. The company said that existing customers will be served by other domestic O-I plants. O-I anticipates a $39 million charge on its Q3 balance sheet associated with the closure, which includes $24 million for impairment of plant-related assets and $15 million for employee separation and closing costs.
This follows a Sept. 4 filing from O-I Glass reporting it approved the closure of four furnaces, including a single-furnace plant in the Americas segment, impacting approximately 200 employees — altogether resulting in a $20 million charge in Q3.
An O-I spokesperson said this week’s filing “is action related to” the early September filing, but did not say whether the $39 million charge was in addition to, or inclusive of, the $20 million noted in September.
Additionally, last week the company announced it approved a severance program related to cost-cutting, primarily in its Americas segment. It expects that to result in a $21 million charge in the third quarter, with most cash severance actually being paid out in the fourth quarter.
O-I is also idling the Perrysburg Innovation Center, WTOL11, a local news outlet based in Toledo, Ohio, confirmed with the company. The center began operations in September 2013 as a 24,000-square-foot combined R&D and pilot plant facility. A spokesperson for Ohio’s Department of Job and Family Services said Thursday it had not received any WARN notice, which indicates forthcoming layoffs, from O-I.
In July, Ohio state officials touted O-I’s role in creating the state’s inaugural “innovation hub,” alongside partners First Solar, Libbey Glass, Owens-Corning and Pilkington North America.
“Supported by more than $31.3 million in state funding from the Ohio Innovation Hubs Program and $10.4 million in local investment, the new Northwest Ohio Glass Innovation Hub will build on Toledo's legacy as the ‘Glass Capital of the World’ to accelerate innovation and job growth in both the glass sector and solar industry, which relies heavily on glass,” the state’s announcement said.
The Toledo Blade reported that O-I’s actions will not impact the viability of the hub going forward, which is supported by multiple companies and institutions.
O-I will hold its third-quarter earnings call on Oct. 30.
