WeƵre less than three months into 2024, and already West Virginia has a problem with retaining jobs in the manufacturing sector.
Word came Tuesday that Novelis ALR Rolled Products is closing its factory in Buckhannon in Upshur County, putting 80 people out of work. According to the website , James Praino, the plant manager for Novelis Buckhannon, said in a letter to city and state officials dated March 15 that the plant will close June 13.
The Buckhannon plant opened in 1999. It was acquired by Novelis in 2020.
Because Novelis has filed paperwork with the Securities and Exchange Commission for an initial public offering of stock, company spokespersons are not commenting further on the plantƵs closure.
The Novelis closure is at least the third in West Virginia to be announced this year. In January, Cleveland Cliffs announced it will lay off about 1,000 workers in Weirton. Later, Allegheny Wood Products said it would cease operations in the state, effectively ending the jobs of 800 employees and contract workers.
On its website, Novelis describes itself as Ƶthe leading producer of flat rolled aluminum products and worldƵs largest recycler of aluminum.Ƶ The company is headquartered in Atlanta, Georgia, and operates 33 facilities in nine countries with approximately 13,170 employees. Novelis is a subsidiary of Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India.
The question facing the state Ƶ not just state government, but all West Virginians Ƶ is whether these three closures are a coincidence or if there is a pattern. The facilities are all part of larger companies, and if industries are consolidating or expanding, smaller operations will be the first to be disposed of in the name of efficiency.
West Virginia can be attractive to major companies and employers Ƶ drive about 28 miles up W.Va. 2 from downtown Huntington to see one example Ƶ but the state does have disadvantages. To name one, most of West Virginia is isolated from major trade routes. When state government has tried to access those routes, things donƵt always work out. Corridor H in the northern part of the state has taken decades, and itƵs still under construction. The Prichard intermodal facility, which was meant to access one of Norfolk SouthernƵs major rail corridors for international shipping, failed.
If there is a pattern, itƵs up to Gov. Jim Justice and his administration to find it and address it. The problem is that this yearƵs legislative session is over. Legislators spent most of their time this year arguing over social issues that play well to their base instead of tackling economic matters. Announcements of several new large investments in recent years probably made them and the governor take the strength of the stateƵs economy for granted. Also, this being an election year means officials running for office again wonƵt be likely to say the state has problems that need corrected.
Some problems may be beyond state governmentƵs control, but even so the state needs to adapt before more of these small closures add up to a large loss.
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