WELLSVILLE, NY – There is some tough news for the already economically challenged Southern Tier.
The Dresser Rand plant in Wellsville will be closing, and 250 jobs there will be eliminated over the course of the next two years.
The announcement means not only a substantial loss of jobs for Allegany county's largest community, but also the end of an era as manufacturing at this plant has been going on in one form or another for about a century.
Dresser Rand’s parent company, Siemens Corporation, is selling its government and services portfolio of Dresser Rand, which makes making high speed engines and turbines for the military, to Curtis Wright.
In a news release, Curtis Wright said the purchase price was $215.5 million, and that the transaction will be subject to regulatory approval.
Curtis Wright may offer jobs to up to 50 workers at the Wellsville plant, but they will be out of state, leaving Wellsville plant empty in the year 2020.
“It's not anything we can say we never would have thought would happen, but I think it's something that we always wished wouldn't happen," said Brian Perkins, Executive Director of the Wellsville Chamber of Commerce.
Perkins says the impact of the job losses will be significant.
“Dresser Rand has is one of the anchors in this community, just in what they do in providing jobs and helping support the community. And then their employees will go out and support all the other area businesses that we have," Perkins said.
Perkins said civic leaders will waste no time in mapping out a plan for the future.
“I think the hope right now is that somebody else could come in and purchase the building and keep jobs in the area, but certainly there's going to be work to do to make that happen.
Siemens sent the following statement to WGRZ-TV:
Yesterday, Siemens met with employees at the Wellsville, N.Y. facility to announce that, subject to regulatory review, Curtiss-Wright will purchase its Dresser-Rand government business and services portfolio and the commercial Power Generation Services (PS) work will be transferred to Charlotte and other Siemens facilities.
Siemens has been making structural adjustments to its manufacturing and service network to offset capacity surplus and price erosion caused by broad energy market changes that are affecting the entire supply chain. Today’s announcement represents the latest step in these ongoing efforts.
The Wellsville manufacturing facility will remain open for approximately two years. During this time, Siemens Government Technologies will perform manufacturing and related work for Curtiss-Wright at Wellsville on a contractual basis to ensure continuity of support for critical customers and programs, until work is transitioned elsewhere. Once expected approval of the sale is finalized in early April, Curtiss-Wright intends to extend offers of employment to approximately 50 employees who support the government business and services work. Additionally, some employees will be afforded the opportunity to staff a local Product Line office to support the transition of commercial PS work to Charlotte and other Siemens facilities, and, those details will be communicated to employees as they become available.
Siemens anticipates workforce reductions impacting roughly 250 people will occur in phases as work is transitioned from the site and will communicate those to employees as timelines are solidified. It is the company’s highest priority to assist all employees during this transition and to provide access to employment resources and job search assistance for those not offered continued employment.
The International Association of Machinists and Aerospace workers, the union representing many of the affected workers, released the following statement:
Machinists Union District 65 Directing Business Representative Ron Warner, released a statement on Siemens announcement that it will close the Dresser-Rand, Wellsville, NY, manufacturing facility.
“The announcement by Siemens officials on Monday came without warning, and without any regard to the workers, their families, nor the future of their families. However, the company has not provided information on how that will proceed, and more importantly a detailed timeline for the closure of the facility.”
Siemens officials met with employees at the Wellsville facility Monday afternoon and announced that Curtiss-Wright is purchasing the Dresser-Rand government business and services portfolio, pending regulatory review. The commercial Power Generation Services work performed at Dresser-Rand will eventually be transferred to Charlotte and other Siemens facilities. The International Association of Machinists and Aerospace Workers (IAM) has represented workers at the plant since 1942.
“I met with the Representatives of IAM Local 1580, and the company on Tuesday, but at this time no in depth information has been provided to the IAM. I will work with the Local 1580 Representatives, and the IAM International to assist our members in every way possible, and assure that our members have the resources necessary going forward.”
The International Association of Machinists and Aerospace Workers, or Machinists Union, represents nearly 250 members at the Dresser-Rand facility in Wellsville, NY. For more information about the IAM visit www.goiam.org.