The Goodrich Cleveland operation supplied a range of landing gear equipment for primarily military customers.... but was facing the end of several contracts with no prospects for replacing the work.
Since first hearing of the potential closing in March, efforts had been underway to find alternatives.
The Ohio Department of Development and Governor Kasich had made overtures, talking personally with Goodrich CEO Marshall Larson. Development head Mark Patton says the state was ready to bend over backwards.
MARK PATTON:
"Our ask, when we had the conversation with the CEO is we would do - really, anything possible that would make a business sense, for us to have some impact on changing that decision."
But a better proposal came from the city of Cleveland and Cuyahoga County.
Presented this week, it was a package that included a $1 million forgivable loan from the county, while Cleveland would add another $500,000 forgivable loan, up to 15 years of real estate tax abatement, and additional income tax rebates - all above and beyond the state incentives.
But the key to the deal was the city offering to build then lease to Goodrich, a LEED-certified 600,000 square foot building alongside I-77...
In exchange, Goodrich would have had to move not only its Cleveland operation there, but bring in the work of its Tennessee and Ontario sites, creating what Cleveland leadership termed a mega-facility.. and 'adding' 300 jobs.
Enticing, but after hearing the offer, Goodrich VP Angie Winter says... it still wasn't enough.
ANGIE WINTER:
"When one considers the cost of closing three facilities, as compared to the benefits that were being offered, we did not find that a workable solution."
The company instead offered 190 unionized workers the option to accept buyout and retirement packages. The offer was approved by ay 83% vote, 'before' this weeks' offer from Cleveland was in hand.
Many of those workers will stay with the company until it shuts down - nearly 18 months from now. About 70-80 are estimated to be eligible to take early retirement.
Similar packages were offered to another 200 or so non-union workers.
All workers are eligible to apply for transfer to other Goodrich plants around the country.
The aerospace company expects to record a $39 million in pre-tax charges related to the closure, but says even `that' is less expensive that operating the aging facility on Cleveland's East Side, at less than its' capacity.
Rick Jackson, 90.3.
