Keter Plastics closing Rio Communities area plant
Company says it will pay back some incentives
After more than two years in operation, a plastics manufacturing plant south of the city of Rio Communities has announced it will be closing its doors soon, leaving more than 100 people without jobs.
Keter U.S. Inc., which began operation in the Rio Grande Industrial Park in late 2017, will cease production July 31, Tom Lombardo said Friday evening.
Lombardo, the company’s strategic business unit leader, notified the plant’s nearly 60 full time employees and the dozens of part time workers of the decision via video Thursday, May 28 and Friday, May 29.
“Regardless, either across a desk, face to face, or by video, this is a very difficult decision” he said. “This is not a reflection on the workforce — the associates there are a very dedicated, hard working, technically sound workforce. This is a wonderful community. We’ve been active in the community, as has our (human resources) director, Daniel Aguilar.
“Everyone there is talented and passionate; we are thankful for the team. This is an economic, business decision, and it’s a tough one. But at the end of the day, it was a business decision that had to be made.”
All workers will have the opportunity to transfer to another Keter facility.
The company has plants in North Carolina, Indiana, near Pittsburgh and in Milton, Ontario, Canada.
When Keter made the purchase, due to changing standards in manufacturing, the ceilings at the Solo Cup plant weren’t high enough, so the company built a brand new 80,000-square-foot manufacturing plant on the vacant portion of the property, leaving the existing building for warehousing and shipping. Lombardo said the company’s investment in the property was just shy of $30 million.
To close the deal between Keter and Tabet, the city of Belen traded 27 acres of municipal-owned land in the Belen Industrial Park south of the city off N.M. 116, and 30 acres of water rights to Tabet for the 14 acres south of the Solo Cup facility. The city council also approved $40 million in industrial revenue bonds for Keter.
Lombardo said any funds the company did not qualify for under the terms of the contracts for the IRBs it had with the city and the state would be paid back.