Auroraadvocate.com - Mantaline to shut local plant

by Ken Lahmers

Editor

Aurora -- A second business in the city's southern industrial zone has announced it is consolidating operations and will close its local facility.

Mantaline Corp., which designs and manufactures polymer-based sealing products for the transportation industry, announced June 22 it will move its 10-year-old Aurora operation to its Mantua facility.

That follows word from Mayor Lynn McGill that Beck Manufacturing is closing its Aurora plant to consolidate with facilities in Waynesboro and Greencastle, Pa.

Both firms occupy buildings on Gentry Drive south of East Mennonite Road.

"These consolidations are not surprising," McGill said. "In these tough times, companies are cutting costs to align their expenses with their revenue."

Mantaline employs about 70 people in its two facilities, with 27 working at the Aurora site. The move should be completed by mid-August.

The Aurora facility measures 41,000 square feet. It houses microwave curing lines and caters to the heavy truck industry.

The company was founded in 1964 as a manufacturer of pipe fittings and window gaskets, but switched its focus in the late 1980s to engineered sealing systems.

Mantaline officials said a single facility will enable the company to optimize production costs, specifically overhead and indirect labor.

"In the final analysis, our break-even scenario will be replaced by a highly sustainable and profitable footing," said Vice President of Business Development Tom Mlinar about the reason for the move.

"By the end of summer, we'll be in a stronger market position without the benefit of any increases from our existing portfolio or a lessening of the recession.

Mantaline has contracted additional space near its facility in Mantua to house some auxiliary operations and shipping.

Meanwhile, McGill said Beck's consolidation "will be finalized by the end of August." Twelve employees are affected. The firm makes plumbing, industrial and electrical conduit pipe fittings.

He said Mantaline and Beck both received tax abatements, which are about to expire.

McGill added the two buildings which will be vacant are "beautiful" and the city will do what it can to attract new occupants.

"I've been interviewing officials from some businesses, and most of them -- especially the smaller ones -- aren't in a position to make any moves right now," McGill said.

City finances tighten

The mayor said he expects to see the economy improve by 2011, but until it does, the city's budget could be very lean for the next two years.

The city closed last year by receiving $1.4 million more than initial revenue projections, but income tax receipts so far this year are down about $1.1 million.

"We haven't been hit as hard as some communities, but we've seen some impact," McGill said.

He added the city hasn't had to cut any employees like some cities have. Going into this year, it had a $5.6 million reserve or "rainy day" fund, which can be tapped into if hard times continue.

"We're taking a cautious approach to budgeting in 2010 and 2011," he noted. "Good financial management, especially right now, is very important."

Net profits taxes also are taking a big hit, according to the mayor, who noted the city's capital improvements spending likely will take the brunt of the hit next year.

McGill said the city is looking to hire two additional police officers, but only if it gets federal stimulus funds from a new program to put more officers on the streets.

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klahmers@recordpub.com

Phone: 330-688-0088 ext. 3155