Hillyard Industries is purchasing the property owned by WireCo Worldgroup as WireCo announces plans to shutdown its St. Joseph facility.
WireCo WorldGroup (“WireCo”) announced Thursday that it is selling its steel wire rope manufacturing facility in St. Joseph, Missouri to Hillyard Industries, a manufacturer and distributor of cleaning and hygiene products. WireCo said it will maintain production through the final closure of the manufacturing facility, which will occur over the next several months to be completed by March 2017.
As part of this agreement, Hillyard said it plans to build a new manufacturing and national distribution center on 25 acres directly to the north of their current facilities.
Hillyard plans to use the facility to relocate and modernize their manufacturing and warehousing operations, which have been located downtown since the 1930s. Administrative offices will remain in their current location.
“WireCo has a long history in St. Joseph and we wanted that legacy preserved to the best of our ability. Hillyard Industries is a natural fit as their continued commitment to downtown and the local community is an optimal next step for the WireCo property. While we are very disappointed that our St Joseph employees are so negatively affected by the plant closing, we will be pleased to see this redevelopment come to fruition,” said Chris Ayers, CEO of WireCo.
Demolition and construction is slated to begin between 2019 and 2020, with the goal of Hillyard being fully operational in their new facility beginning in 2021 or 2022. WireCo plans to close its manufacturing facility, while continuing the fabrication division of its business in its current location.
WireCo said it will provide transition assistance to the 49 employees affected by this decision.
“It is difficult to close any manufacturing plant, because of the impact to good people, their families and the community. The harsh reality is the global oil, gas, and crane rope markets are facing economic challenges, and every company in these industries is being affected,” said Chris Ayers, WireCo’s President and CEO. “This sale and consolidation of our production facilities enable us to continue to service our customers at the highest quality level despite an increasingly challenging market for WireCo and our customers. We continue to focus on developing innovative products and building upon the strong WireCo brands.”
Hillyard plans to retain approximately 200 jobs in St. Joseph.
“When conversations with WireCo began, it was immediately apparent that we shared the same vision and goal of making decisions that benefit downtown St. Joseph. We want to provide opportunities for growth and reinvestment among our employees and in the downtown area where Hillyard has thrived for several generations. We are excited about this project and the vitality it will add to our local community,” said Jim Carolus, president of Hillyard.