Ira plant uninterested in incentives

By Louise Hoffman Broach / The Citizen

Friday, February 4, 2005 11:30 PM EST

U.S. Rep James Walsh is offering to help a California-based health bar company keep its Ira plant open by exploring potential economic development tools, but Nellson Nutraceutical's vice president of manufacturing said the March 24 closing is final.
Walsh, R-Onondaga, wrote a letter to Tom Jagiela this week, offering to intervene in the matter and expressed disappointment that Nellson Nutraceutical did not contact local elected officials prior to making the decision to close the Ira plant on Route 34 and displace 108 workers.

"As such, I regret that we did not have an opportunity to discuss the possibility of keeping the plant open and these workers employed," Walsh wrote. "As I'm sure you can imagine, these dedicated employees are disappointed and disheartened by this announcement."

Contacted at the company's Iwindale, Calif., headquarters Friday, Jagiela said increased capacity and the anticipated addition of a line at the plant there means there's no need, production-wise, for the Ira facility to remain open.

He said there isn't anything Walsh can do to reverse the decision.

Jagiela called the closing unfortunate for the Cato area but said the company was committed to doing whatever it could to help the employees find new jobs. Nellson Nutraceutical is offering severance packages based on longevity and is partnering with the state Department of Labor to provide services to workers.

Dan Gage, a spokesman for Walsh, said there is a meeting scheduled for Thursday. The labor department's Rapid Response Team will work with the company to provide assistance that could include identifying re-employment prospects and re-training, according to the DOL Web site.

Even the plant manager will be looking for another job.

Joe Budzinski, who's run the Nellson Nutaceutical Ira facility for about 2.5 years, said he was given the opportunity to transfer to California, but didn't take it.

"They offered something, but I decided to stick around here," he said.

Jagiela said he was at the plant Jan. 21 when workers were told the plant would close in a little more than two months. He said some workers asked about transferring to California.

"I said anyone interested could call me and talk about it," Jagiela said. "But I don't know if anyone is really interested. It's a long way."

Nellson Nutraceutical is a $50 million contract manufacturer of nutritional food bars and powders for weight loss, sports training and wellness and medical categories.

According to Thompson-Gale, which monitors information about 45,000 public and private companies, the Ira operation generated $22.5 million in sales in 2003.

The California company moved into the Ira plant about four years ago, after buying out Increda-meal, which had run a similar operation from the building. Leonard and Imogene Schmidt of Cato founded Increda-meal in 1982 and still own the building.

Staff writer Louise Hoffman Broach can be reached at 253-5311 ext. 238 or louise.hoffman@lee.net

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