MUNCIE, IN — Spartech, a custom packaging and engineered thermoplastics manufacturer, is closing its Muncie factory, ending local employment for 125 workers beginning with layoffs this week.
Spartech sent a letter, required by law, to the Indiana Department of Workforce Development dated Dec. 12 that said the local plant at 1401 E. Memorial Drive is being closed permanently.
“All positions currently located in that facility will be transferred or permanently laid off due to business need,” the letter, signed by JuliAnn Bock, vice president of human resources for the St. Louis-based company.
Spartech officials did not return calls from The Star Press.
The letter said the layoffs were scheduled to start Tuesday, Dec. 23, with the final round of layoffs being completed by Feb. 13. Spartech employees are not unionized.
Mayor Dan Ridenour said city officials have spoken with Spartech since the announcement letter was sent. He said Spartech is asking some employees to remain and are paying bonuses to those agreeing to remain employed at the plant through Feb. 13.
He said the company might have looked at its overall operations and decided to close the Muncie plant because of its age. The factory was once a part of the Ball Corp. campus in southeastern Muncie. According to the Spartech website, Ball opened the Muncie plant in 1984.
Even as the first layoffs arrive on the week of Christmas, the mayor said other opportunities exist at local manufacturers looking to hire some of Spartech’s experienced workers. That includes Progress Rail, which he said plans to hire 300 people over time at its Muncie plant along Cowan Road.
The Muncie Manufacturing Alliance is working with Spartech to help place those left idle by the closing, said Delaware County commissioner Stephen Brand, who has been involved with the alliance since his time as plant manager at Magna Powertrain in Muncie.
The alliance is a consortium of about 80 local manufacturing firms that meet quarterly to enhance economic development in manufacturing.
Brand said Spartech had agreed to send the alliance a list of employees losing their jobs and their work skills so local manufacturers could recruit them for open positions.
Local factories are having a challenging time finding good workers, he said. One manufacturer he declined to identify was having to import 15 to 18 workers from outside the area and pay to house them while they are working.
“They have a hard time just finding people willing to show up on time,” Brand said of the local workforce.
The alliance has also teamed with IVY Tech in Muncie to help Spartech workers enhance their skill set as they prepare for a job search, and two employees of the closing plant have already expressed an interest in additional training.
Asked whether the available factory jobs are paying enough to cover the cost of raising a family in Delaware County, Brand responded: “A lot of people do it.”
He noted most of the cars in parking lots at the factories around Muncie are nice, and many are new. But much depends on how people choose to live.
“If you want a new cell phone every year and a big-screen TV in every room, probably not,” Brand said.
As recently as 2023, Spartech requested and received tax abatement from the Muncie City Council for the installation of $4.9 million in new manufacturing equipment, Ridenour said.
In June, Spartech announced it was undergoing “comprehensive refinancing” that was designed to “reduce leverage, provide additional liquidity, and enhance financial flexibility.” The transaction aimed to provide Spartech with a capital commitment of $45 million.
This article originally appeared on Muncie Star Press: Spartech closes Muncie factory, ending employment for 125 workers
Reporting by David Penticuff, Muncie Star Press / Muncie Star Press
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