SPRINGDALE -- Apex Tool Group will close its Northwest Arkansas plant, costing 250 jobs, the company said Thursday.
The facility will stop production by the end of 2015, said Kelly Blask, spokeswoman.
Employees at the Springdale plant will be given the choice to either take a severance package or transfer to the company's Sumter plant, Blask said. Officials will hire 150 to 200 more employees for the South Carolina location.
"It's a tough day for our associates," Blask said.
This was the second major shutdown announced for manufacturing in Northwest Arkansas in eight days. Superior Industries announced July 30 that it would close its aluminum-wheel plant in Rogers by the end of the year. That closing will cost 500 jobs.
"This is certainly bad news for everyone, but especially for those losing their jobs," said Mayor Doug Sprouse. "If there is a silver lining to this, it is that Springdale is a good place to find a job. We've had a lot of positive announcements recently. But we certainly hate to hear this."
Apex operates the former Danaher Tool Group facility on Old Missouri Road. The company makes a variety of hand and power tools there, including brands for Sears, Armstrong and Matco. It also manufactures horseshoes.
The operation received a $500,000 grant from the Governor's Quick Action Closing Fund in 2010 to help defray the cost of moving equipment there in an earlier company consolidation. Apex announced a $1 million expansion that year at the plant that was to add 50 jobs. At the time, the Springdale plant employed 500.
Two workers exited the employee entrance at the plant Thursday afternoon, and one of them held a letter addressed to employees. The two workers, along with four other employees, refused to comment on the plant closing. Blask said company officials announced the closing to employees Thursday before the end of the work day.
"This plant has been a part of Springdale's economy for more than 45 years, and we are saddened by this decision," said Perry Webb, president of the Springdale Chamber of Commerce.
"While this is a setback, it is our understanding that there will be no immediate layoffs. That gives us time to mitigate the impact of this announcement through continued job creation in Springdale. As the state's leading job creator since 2010, there is no city in Arkansas better equipped to deal with a layoff like this.
"We have known for some time that plant consolidation was part of the company's long-range plans," Webb said. "We were the beneficiary of this strategy in 2009 when we were able to assist our local plant in securing consolidated tool lines from New York at the time Apex Tool Group was formed by Danaher Tool Group and another tool firm."
Apex also announced plans to close a plant in Garland, Texas, while one in Sumter, S.C., will remain open, Blask said. The three facilities will be consolidated into the one in Sumter, she said. The company decided to close the Arkansas and Texas plants because none of the three factories were running at capacity, she said.
"We'll need to review this and see if there was any state policy that we could have changed, something that would have helped keep them here," said Sen. Jon Woods, R-Springdale. "I know the chamber is working on things that will help balance this job loss out in the very near future and help the workers there."
NW News on 08/08/2014