Layoffs uncertain after Freedom Plastics sale
JANESVILLE -- Freedom Plastics was sold this afternoon to four different companies for a total of about $11.5 million.
Westlake Chemical Corp. of Houston will pay $6.3 million for the Janesville pipe manufacturing division; Harrington Corp. of Lynchburg, Va., will pay $1 million for the Janesville fabrication division; Silver-Line Plastics Corp. of Asheville, N.C., will pay $3.8 million for the Florida division; and NACO Industries of Logan, Utah, will pay $400,000 for equipment in Idaho.
Judge Kenneth Forbeck approved the sale this afternoon in Rock County Court.
It is unknown how the sale will impact employees at Freedom Plastics.
Dave Hansen of Westlake Chemical Corp. said it was too early to comment on whether the pipe manufacturing division in Janesville would remain in operation and continue employing about 55 people.
Mike Harrington of the Harrington Corp. said he hopes to operate the fabrication division in Janesville and retain its 25 employees.
Freedom Plastics makes PVC pipes and fittings and supplies the wastewater, plumbing, irrigation and industrial markets. It's suffered with the depressed construction economy and growing costs of materials.
Freedom Plastics entered a court-supervised receivership sale in early February in hopes it could stay in business in Janesville.
Then the company's receiver notified the state that more than 100 Freedom employees in Wisconsin and Florida would be laid off in April unless a buyer steps forward.
Mar 18, 2009 at 6:23 p.m.
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Oh and here is a link to the president's quote: http://gazettextra.com/news/2009/feb/04/...
Mar 18, 2009 at 6:22 p.m.
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Janesvillean: I realize they did not have any say; HOWEVER the president of the company was quoted as saying, "As owners, we just don't have the time or the personal wherewithal. It's a complete loss for the ownership, but it's all about saving the jobs." I would say he is IMPLYING that he actually cares about the employees. I do not buy into that for a second. If he cared that much, he would insist on proper communication to the employees throughout this process. From what I have read, he has not done that at all and the employees are receiving their information through the gazette and rumor mills. To me, he lacks all concern and respect for his employees. What a shame!!!!
Mar 18, 2009 at 8:19 a.m.
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I used to work for Mike Harrington. When he says he will do his best to keep Janesville employed, he means it. I wish the best of luck and prayers to all of you.
Mar 18, 2009 at 7:26 a.m.
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I think Westlake Chemical wants to operate the Janesville PVC pipe & fittings plant as part of the Westlake-owned North American Pipe Corp. Janesville fits well into their strategy of establishing regional manufacturing capacity to meet the time and quality needs of lots of different markets. Westlake is well capitalized, and most certainly purchased the Janesville facility in order to operate it. The trump card for the Janesville Freedom employees is their reputation for efficiently producing quality PVC pipe & fittings. Westlake will certainly want to take best advantage of that.
Mar 18, 2009 at 2 a.m.
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Areyouserious, do note that once the company entered receivership, current management had zero say in the company's future.
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prevention, it's not that different from a bankruptcy auction, where somebody comes and buys an end-loader and somebody else buys all the office chairs. At least here they bought a "going concern" and have the choice of operating it.
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Crossing my fingers for everyone, especially here in Janesville.
Mar 17, 2009 at 10:22 p.m.
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ledzep77: I know we have disagreed on things like football quarterbacks but when it comes down to the real nitty gritty, I hope your job is safe. Hang in there.
Mar 17, 2009 at 9:59 p.m.
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I guess I will not be offering any apologies for my previous statements on other articles regarding Freedom Plastics....to name a few:
Do you people really believe (removed name here) and the rest of the management team cares if Freedom employees have a job when all this is said and done? I, for one, am not buying into this. They are trying to portray an image of caring to disguise their obvious irresponsibility!!!!!
I am not bitter, I guess I have seen too many people suffer at the hands of poor management. Not at Freedom Plastics, just in general. I hope, hope, hope, hope my pessimism in this case is incorrect. In a few weeks, it would be wonderful to hear Freedom was sold to a someone who wanted to keep all the current Freedom employees. If that happens, I will post an apology for my pessimism. This is one of the few times in my life I wouldn't mind being proven wrong! :-)
As a side-note, I am happy to hear SOME of the employees will probably be keeping their jobs! However, not pleased enough to apologize!
Mar 17, 2009 at 9:24 p.m.
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Sounds pretty bleak for Preston...and most of Freedom, Florida will maybe ok. The production guys sounds most likely to keep their jobs. This is pretty sad. Lets just all keep our fingers crossed for everyone!! Good luck Freedom!
Mar 17, 2009 at 8:09 p.m.
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Prevention, the company could have been even more ripped apart if it was liquidated. It sounds like at least some of the employees will keep their jobs. :-)
Mar 17, 2009 at 8:07 p.m.
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Janesville says "Hit me again Ike! And this time put some stank on it!"
Mar 17, 2009 at 8:06 p.m.
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From what I heard (RUMORS and may not be accurate) the first "winners" high bid was less than the 11.5 million. My opinion is that the Florida location is is the best position as far as retaining its employees...it's better than ALL of Freedom's employees losing their jobs.
My fingers are crossed for all involved!
Mar 17, 2009 at 7:53 p.m.
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No more Freedom Plastics . what do they name their new comp? WEHA plastics?
Mar 17, 2009 at 7:45 p.m.
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Is this as confusing as it sounds to me? How can one company be pulled apart like that? I mean, it seems like someone is pulling one child in 4 different directions. Just IMO
Mar 17, 2009 at 7:33 p.m.
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In my opinion the bank should have accepted the first winners. Now the company is even more torn apart. I’m hoping for a bright future but some how I just don’t see it.
Mar 17, 2009 at 7:17 p.m.
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Good luck to all , hope you can keep on working there........STAY SAFE!!
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