Michelin of North America recently announced the closing of the BFGoodrich Tire Manufacturing Plant in Opelika. After nearly 46 years of operation, the plant will close its doors on October 31. The closing will result in leaving 1,000 employees jobless.
According to a statement released by BFGoodrich on April 13, the closing is the result of the current economic crisis which has people driving less, purchasing fewer vehicles and delaying tire replacement purchases. The statement went on to say 2009 is projected to be the second year in a row to experience a decrease in tire sales.
"Business decisions that directly impact the lives of our employees are extraordinarily difficult," said Dick Wilkerson, chairman and president of Michelin North America. "This action is necessary, however, for the long-term health and competitiveness of Michelin North America. In this crisis, there is no more business as usual."
Many of the employees at the manufacturing plant are Opelika and Lee County residents and city officials are working hard to deal any challenges awaiting between now and October.
"Our number one concern is those 1,000 employees that will lose their jobs at the end of October," said Gary Fuller, mayor of Opelika. "Our number two concern is how it impacts our economy. We know that we will lose over $850,000 in occupational license fees, which is a major hit to the city's budget. Our challenge is to help those employees find another job."
Jan Gunter, community relations specialist for the City of Opelika, said the state of Alabama, the City of Opelika and Michelin of North America will all be working together in an effort to figure out the next steps.
"The closing of the plant will affect our entire community," Gunter said. "It will affect the City of Opelika because of the loss of occupational taxes we receive from BFGoodrich, approximately $850,000. It will affect Auburn and Lee County as well because most BFGoodrich employees use their spendable income right here on rent, gas, food and goods they purchase."
Wendi Routhier, president of the Opelika Chamber of Commerce, said one way the city will be able to overcome this situation is by recruiting more industries with jobs that pay well to come to Opelika. She agrees the local economy will feel the effects of the closing of the plant.
"Opelika as well as all of Lee County and East Alabama depends on people to spend money in our stores and on our car lots," Routhier said. "When people lose their jobs, as they have recently in large numbers, they stop spending."
Gunter said she has full confidence the City of Opelika will overcome this, and she is proud of city officials and the way they are handling the situation.
"I believe we have the opportunity to make lemonade out of this lemon," Fuller said. "The City of Opelika has successfully recruited from around the world in the past few years and several world class manufacturers have located here."
Fuller said this is not the first plant closing his city has seen. Even so, Opelika has still experienced growth and prosperity.
"I'm grateful for what the tire plant has meant to our community the past 45 years, but now we have to move on and prepare for the future," Fuller said.
After the closing of the tire manufacturing facility in Opelika, production will be consolidated to facilities in Tuscaloosa and Ft. Wayne, Ind.
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