Gates to move hose production to Illinois plant

ERJ staff report (R&PN)

Denver, Colorado - Gates Corp. plans to relocate 78 hydraulic hose manufacturing jobs from the factory it plans to close in Charleston, Missouri, to its facility in Galesburg, Illinois.

Gates announced last week the Charleston plant would close this year, then revealed March 19 that the production will be moved to Galesburg. The production is expected to be in place by the end of August.

The Denver-based firm also plans to invest more than $3 million in the Galesburg location, according to a statement issued by the city of Galesburg.

Opened in 1962 as a hose manufacturing site, the Galesburg plant currently serves as a rubber mixing facility and an industrial hose distribution center and employs 105, Gates said.

The announcement followed a vote Friday by United Steelworkers Local 685 that approved a two-year contract extension at Galesburg. The Charleston factory is non-union.

The city of Galesburg's statement said Gates is being offered training assistance through the city's Employer Training Program. The Illinois Department of Commerce and Economic Opportunity also offered a tax credit through the existing Economic Development for a Growing Economy program agreement that was part of a warehouse/distribution project approved in 2008 that added 25 jobs.

“While it is never easy for any company to move jobs out of a well-established community, we appreciate the efforts of our employees in both plants who are supporting this transition,” Scott Day, Gates vice president of manufacturing, said in a statement.

From Rubber & Plastics News (A Crain publication)

Press release from Gates