Dal-Tile Announces Olean Plant Closure

October 5, 2012 Updated Oct 5, 2012 at 11:03 AM EDT

By WKBW News


Credit: Photo Courtesy of www.daltile.com

Dal-Tile Announces Olean Plant Closure

October 5, 2012 Updated Oct 5, 2012 at 11:03 AM EDT

DALLAS, TX (WKBW/Release) - Dal-Tile, the largest manufacturer of ceramic tile in North America, today announced it has completed a comprehensive assessment of the unglazed mosaic tile segment. The company has decided to close its Olean, N.Y., location, and consolidate and expand mosaic operations into its Gettysburg, Pa., facility.

This decision brings production capabilities in line with the decline in the unglazed mosaic segment.

Dal-Tile’s operations in Olean are tentatively scheduled to shut down by the end of January 2013 and approximately 174 employees will be affected by the closure. The company anticipates that initially, approximately 64 positions will need to be added in Gettysburg, which currently has 185 employees.

“Though made with careful consideration, declining demand for this type of tile and our excess production capacity necessitated our decision to close the Olean facility. It was an extremely difficult decision given our employees and history at the site,” said John Turner, Jr., president of Dal-Tile.

“However, our manufacturing operations at Gettysburg provide the capacity, flexibility and cost effectiveness that we require to meet customer needs.”

Turner said the decision to consolidate mosaic tile manufacturing will not have an impact on customers or product availability.

The company’s decision followed an extensive business study that also included the thorough review of an incentive proposal provided by Empire State Development (ESD), the state of New York’s chief economic development agency.

ESD’s proposal to enhance investment in and growth at the Olean facility included grants, tax credits and other forms of financial assistance from NYSEG, NYSERDA, NYPA and Cattaraugus County (in the form of energy efficiency incentives, utility incentives and loans).

“The ESD, United States Senators Schumer and Gillibrand, state Senator Young, and agencies across the State of New York were very aggressive in their efforts to get as many sources and incentives as possible; we believe that they did all that they could,” Turner said.

“Their dedication to providing Dal-Tile with an extremely comprehensive proposal in an very timely manner was very much appreciated, so that we could have the information needed to finalize the assessment and make a decision.”

Dal-Tile has notified its employees in Olean and Gettysburg and United Steelworkers Olean Local 151G, which represents selected employees at the Olean facility. Effects bargaining with the union is currently in progress.

The company will work closely with the State of New York’s Department of Labor to provide resources to those employees impacted by the closure.