Shawnee to keep plant
A group of investors led by the former plant manager has purchased Wolverine Tube Inc.’s manufacturing plant in Shawnee. The new Shawnee Tubing Solutions plans to update product lines made at the facility.
SHAWNEE — A group of investors led by the former plant manager has purchased Wolverine Tube Inc.’s manufacturing plant in Shawnee and plans to keep the facility operational.
Startup copper tubing manufacturer Shawnee Tubing Solutions LLC said Monday it has bought the facility and the majority of Wolverine’s operations. The new company is led by CEO Greg Gallman and was backed by local business leaders and investors.
“Faced with the possibility of losing hundreds of jobs, the Shawnee community joined with myself, our advisers and our management team to make this happen,” Gallman said in a statement. “I am honored that the hard work has finally come to fruition. We look forward to continuing to build our company here in Shawnee and to provide employment opportunities and economic benefit to the community for many years to come.”
The announcement drew praise from local economic development leaders.
“It’s positive from our perspective to have local ownership in control of the facility,” Tim Burg, executive director of the Shawnee Economic Development Foundation, said in an interview with
The Oklahoman. “We’re excited for the prospects of the facility to have local owners hip and are looking forward to seeing what we can do to help them grow.”
The Shawnee plant has about 500 employees, although that number likely will be cut to between 360 and 380 over the next year as the new owner updates the facility’s product lines, Human Resources Director David Yockel told The
Oklahoman.
“We will exit the tech tube business, which is not a profitable segment, and will focus on the industrial product that is profitable to us,” Yockel said. “We will expand that capacity and re-enter a market we used to produce and compete in — water tube, which is also called plumbing tube.”
While some of those cuts likely will be from attrition, Burg said Shawnee will be able to absorb the reductions at the tubing facility.
“Shawnee and Pottawatomie County have 70 manufacturers,” he said. “We have some larger manufacturers always looking for skilled employees. When the time comes, we may be able to help the affected employees be re-skilled to work in a different facility.”
The Shawnee plant has been in operation for more than 40 years and will be Shawnee Tubing’s manufacturing home.
“We see a very bright future for the company. There’s a lot of upside to the marketplace,” Yockel said. “We have a loyal workforce with lots of institutional knowledge. We want to build on that expertise and move it forward. We’re very excited about what the future looks like for us down the road.”