Cooper Tire and Rubber Co. says it will close its plant in Albany, Ga., the result of a capacity study of its four plants.
The Findlay, Ohio-based company will keep open plants in Findlay; Texarkana, Ark.; and Tupelo, Miss. The company announced the decision in a conference call Wednesday.
Workers were told in October that the company was facing higher costs and shrinking demand, and that Cooper had to make a dramatic cut. The company embarked on a study of each of its plants while the factories and their communities worked to provide Cooper with reasons to keep operating.
In Findlay, union workers voted to accept a pay cut. In Texarkana, the union voted to scuttle its current contract in favor of one in which workers would freeze salaries.
Georgia like the rest of the nation is suffering through the recession. But a group of state economic development leaders on Tuesday said Georgia is well positioned to weather the storm while still expanding its global reach.
That’s because they say key ingredients remain strong in Georgia. They point to workforce training, ability to attract a young population, and Georgia’s transportation infrastructure.
Ken Stewart with Georgia’s Department of Economic Development acknowledges the state’s construction and textile sectors have taken hard hits in the ailing economy. But he says for the past six months, the state has been pushing its aerospace, life-science and agriculture industries worldwide.
"What we do is we go sell what we know is sustainable. We’re selling our strategic industries in a proactive and focused way. It’s a simple process. We say which industry segments to we want to grow--where are the companies throughout the world within those industry segments that are leaders and need to have access to this marketplace."
In their trips to bring new business to Georgia, officials say it’s what they cannot control that’s been the problem--the general global economic malaise postponing company expansion plans. Sam Williams is president of metro Atlanta’s Chamber of Commerce:
"They’re not saying we don’t want to come to metro Atlanta or Georgia...they’re saying we still want to come, but we’re having problems borrowing money and arranging our capital financing to accommodate growth and expansion there. So they’re saying ‘let’s keep in touch, we still want to do this, but let’s talk in March, let’s talk in June’."
Williams is hopeful that a proposed economic stimulus package by the incoming Obama-administration to target the nation’s infrastructure might benefit Georgia. Williams says investment in the state’s transportation grid can quickly open the door to new jobs.
Economic development officials plan to push Georgia lawmakers in January on issues such as transportation funding and rolling back tax rates on businesses.
