Bio-Lab Inc., a maker of household chemicals such as The Works, plans to close its Ashley plant in DeKalb County next year, likely costing 55 workers their jobs.
Bio-Lab’s parent company, Chemtura Corp., has asked a New York bankruptcy court to let it consolidate operations at the Ashley plant into a Bio-Lab plant in Conyers, Ga. A hearing on the matter is scheduled for Sept. 29, but the company expects the court to approve the closure as a cost-saving measure.
“We’re planning in anticipation of approval,” John Gustavsen, Chemtura’s manager of corporate communications, said Thursday from company headquarters in Middlebury, Conn.
Gustavsen didn’t respond to a call asking about wages of workers at the Ashley plant and warehouse or whether any would be allowed to transfer to Georgia. But a Sept. 9 court filing seems to hold little hope that many will get to transfer.
Chemtura has “determined that the Ashley facility and its workforce are no longer integral to (Chemtura’s) ongoing business and that ongoing operations at the Ashley facility are not beneficial to” Chemtura, the filing says.
The company told the court it plans to spend $400,000 on severance payments to employees.
Chemtura says it faces no cleanup orders from environmental authorities for its plant at 101 S. Parker Drive but plans to clean up the site “out of an abundance of caution.”
The process of closing and decommissioning the plant will be complete within nine months, according to court documents.
Chemtura filed for bankruptcy March 18, citing the global recession and a loss of business. It’s trying to cut costs and restructure debt.
The loss will be a further blow to the DeKalb County economy. In July, it was one of the few counties in the region to see its unemployment rate rise, going up 0.3 percentage point to 14.2 percent.
