Saving Century Jobs
Local officials optimistic when execs meet governor todayBy JESS MANCINI
Article Photos
RAVENSWOOD - Officials are relying on the efforts to keep Century Aluminum in Ravenswood from closing.
''Call me an optimistic whatever,'' said Ravenswood Mayor Lucy Harbert.
Century Aluminum, which employs nearly 700 people, on Dec. 17 said it was shutting down one of the four pot lines at the plant but warned the facility could close in 60 days depending on the price of aluminum and production costs were cut 20 percent by February.
Gov. Joe Manchin and local officials today are again meeting with utility, labor and company representatives, this time with Chief Executive Officer Logan Kruger and Vice President and Chief Operating Officer Wayne Hale to talk about ways to keep the plant open. An earlier meeting was held on Dec. 23 that also included Appalachian Power as electrical usage is a major expense at the plant.
One way is to give Century Aluminum tax relief or defer taxes until later, said Delegate Mitch Carmichael, R-Jackson.
''The state should do whatever it can to make sure this critical manufacturing facility stays open in our county,'' said Carmichael, who will be at the meeting.
The plant, because it is an existing facility, isn't eligible for the breaks West Virginia would offer a new company to locate here, he said.
''If this was a new company, we would open up the state treasury,'' Carmichael said.
Carmichael said he will encourage his colleagues in the Legislature to approve relief such as breaks on personal property inventory taxes, business franchise taxes and corporate net income taxes.
''These taxes should be looked at,'' he said.
Company and other officials may be available to the press after the meeting at the community building in Ravenswood, Manchin spokesman Matt Turner said.
The governor also is optimistic, but there's many factors and parties who have to come together, Turner said. The state can't solve market problems, he said.
''We're being realistic on this, too,'' he said.
Solutions can't be for the short term, Turner said. Manchin's aim is long-term plant viability and any plan won't be a bailout, Turner said.
''He expects all parties to come to the table with something,'' Turner said.
The plant's closure would be devastating for the city, county, the region and the state, said Harbert, who will be in today's meeting.
''Hopefully there's something we can do,'' Harbert said.
Mark Whitley, director of the Economic Development Authority in Roane County, Jackson County's neighbor to the east, agrees and has his eyes and ears on what's happening at the plant. The repercussions will be regionwide if Century Aluminum is shuttered, he said.
Residents across the counties work at the plant while businesses in the region are suppliers and contractors there, he said.
''We're really interdependent on each other,'' Whitley said.
According to Whitley, it costs about $34 million a month to run the plant, which includes electrical costs of $9 million, labor costs of $5 million and raw material costs of $9 million. Moreover, the price of aluminum has dropped more than half to about 80 cents a pound, he said.
''It's really a challenging economy we're in right now,'' Whitley said.
Today's meeting is intended to be more intimate than the December meeting, Turner said.
''This is going to be a private meeting,'' Century Aluminum spokesman Mike Dildine said Friday.
A statement may be issued by the company at the conclusion of the meeting, he said.
|
cabaka
|
|
|---|---|
|
01-11-09 3:44 PM
|
It is the way it is done in West Virginia. Lure a business from another location with tax breaks until their assets are captured, then extract their assets. Before the assets can be captured, those established businesses are forced to compete with new companies that have competitive advantages further weakening existing businesses. We treat business like the goose that lays golden eggs. The goose can not lay eggs fast enough for government so they resort to forced extraction until the gooses head is fatally pulled through its egg laying facility at which time it is picked like a Christmas turkey by Charlestonian dufuses. Delegate Mitch Carmichael, R-Jackson came up with a great idea! 'These taxes should be looked at,' he said.
|
|
CrazyLarryJones
|
|
|
01-11-09 2:21 PM
|
My wife works for Walmart because she chooses too. She could stay home and we would not have insurance at all. Parrothead thinks we can all live in a socialist utopia where the rich pay the way for the poor. Why should I have to subsidize outragous salaries and utilities for those workers and managers? Let them experiebnce the consequences of greed and incompetence. Maybe if Marc Rich had not looted the place and gave the Clintons a huge sack full of money there would of been enough resourses to have refurbished the plant into a more effecient operation. How about when the workers walk out and let the pots freeze up, what does that cost? Four Million bucks to start up again is what I think I remember. It is not my place to support that.
|
|
CrazyLarryJones
|
|
|
01-11-09 2:20 PM
|
My wife works for Walmart because she chooses too. She could stay home and we would not have insurance at all. Parrothead thinks we can all live in a socialist utopia where the rich pay the way for the poor. Why should I have to subsidize outragous salaries and utilities for those workers and managers? Let them experiebnce the consequences of greed and incompetence. Maybe if Marc Rich had not looted the place and gave the Clintons a huge sack full of money there would of been enough resourses to have refurbished the plant into a more effecient operation. How about when the workers walk out and let the pots freeze up, what does that cost? Four Million bucks to start up again is what I think I remember. It is not my place to support that.
|
|
formerovresident
|
|
|
01-11-09 12:49 PM
|
Thank you CRAZYLARRY. Parrothead, who PAYS the Medicaid taxes that you keep referring to? Only half of the American taxpayers actually pay any taxes, the bulk are paid by “rich” people making over 80K and successful corporations like Wal*Mart. IF they make billions in profit they PAY about 40% of that profit in fed and state taxes. Do you realize ExxonMobil paid more in taxes last year than the bottom 50% of the taxpayers in the USA COMBINED!? My point: without the Wal*Marts, Microsoft, and Exxons of this country, millions MORE people would be on Medicaid and there would be billions LESS of corporate taxes to pay for it. How much taxes are losing companies like GM and Chrysler paying towards people who can’t afford insurance? Nothing, they are accumulating tax writeoffs for use against future profits, if ever. And the gov wants to take those taxes to prop up dinosaurs that should be extinct. We should be happy that an American company is the world’s largest retailer.
|
|
popawoodie
|
|
|
01-11-09 12:24 PM
|
Nine Million dollars a month on Labor and only 700 jobs? I think I am missing something.
|
|
Parrothead
|
|
|
01-11-09 9:30 AM
|
CrazyLarryJones – You shouldn’t be thanking Wal*Mart for your wife’s insurance, you should be thanking every taxpayer you see.
|
|
Parrothead
|
|
|
01-11-09 9:28 AM
|
Formerovresident - That is NOT what I am saying at all. What we are saying is that everyone should call our elected officials and demand that something be done to force corporations that are showing large profits, such as Wal*Mart, to use some of those profits to provide better pay and benefits to their employees or face tax penalties and fines. If Wal*Mart can post billions of dollars of profit in a quarter they can afford to pay 100% of their employees insurance! You complain about how the bail-outs are wrong yet we subsidize the profits for Wal*Mart and it’s stockholders daily and then defend them for their business practices. What’s up with that?
|
|
CrazyLarryJones
|
|
|
01-11-09 6:58 AM
|
I agree with Formerovresident, My wife works at Walmart to provide us with insurance. Plus there is the four dollars a month for prescription medicine vx the sixty I was paying before.
|
|
Geezer
|
|
|
01-11-09 3:39 AM
|
A jackrock ain't much fun when you got nowhere to throw it, is it boys?
|
|
formerovresident
|
|
|
01-10-09 4:57 PM
|
Parrothead, I fail to see the relevance of your discourse against Wal*Mart in an article about Century. Wal*Mart website claims 76% of its employees are covered by health insurance, the average for retail sales is 24%. They cover 1.3 million people counting family members. Another article claims their low prices save consumers $34 billion a year! So is Ohio and the nation better off with 1.3 million WITH insurance and $34 billion saved for consumers ? Of course! Some part timers who don’t quality is peanuts compare with the big picture, do the math! How many Target, Kmart, Sears employees are ALSO on Medicaid? The problem is that new administration wants to punish Wal*Mart, Microsoft, and other world leading companies via taxes while bailing out LOSERS like GM, Chrysler, etc. who need to die and be reborn. It is world economy; if Century Ravenswood is not competitive, it is history. Sad for the people, but reality is not guaranteed to be kind.
|
|
EmilyL
|
|
|
01-10-09 12:50 PM
|
But, look for Manchin to give away our tax dollars, in one way or another. He will either pay Century's electric bill with our taxes, or give them huge tax breaks. Again, upper management and shareholders will reap a huge windfall.
|
|
EmilyL
|
|
|
01-10-09 12:48 PM
|
I don't know anything about laziness and waste at Century. But, I do agree that they should make it on their own. If not, before we know it, our taxes will be raised to support ALL businesses across the country. And, the sharehoulders and CEO's will reap the benefits of our taxes.
|
|
dsk4wva
|
|
|
01-10-09 11:07 AM
|
I know people that work at Century and I have heard plenty about all the waste the employees and company allows. Why the government would be bailing out such a poorly run company is unimaginable. If our small manufacturing business goes under does anyone think any government bureaucrat would care? Of course Century pays more in taxes and government is responsive to the people who pay the bills. Century should be made to compete like every other small business has to do or go under. Maybe the employees would then regret some of their feckless waste and laziness.
|