South Carolina outspent Ohio and convinced welding equipment company ESAB to move its 100 jobs out of Ashtabula.
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An ironworker welds a piece of metal while working on bridge improvements. Welding supply company ESAB plans to shutter its Ashtabula plant early next year, moving 100 jobs to South Carolina.ESAB on Wednesday announced that it will build a new plant in Union County, S.C., to produce welding wire. The facility will open late this year, replacing the Ashtabula plant that opened in 1940.
ESAB project manager Stephen Bryan said state and local officials in Ohio offered tax breaks to keep the company in the area, but it wasn't enough.
"They came to the table and made a very good effort in presenting a package that was very appealing," Bryan said. "South Carolina had a better offer."
Officials at South Carolina's Commerce Department declined to share details on what they offered ESAB to win the plant. Ohio's Department of Development said it also made an offer, but a department representative declined to say what the offer contained.
Brian Anderson, executive director of the economic development group Growth Partnership for Ashtabula County, said the state, county and city tax offers made by both South Carolina and Ohio were similar. The difference was that Union County was willing to buy a building for ESAB, a step Ashtabula County couldn't afford to match.
"After everything that's happened over the past few years and everything that we're expecting over the next few years, nobody has $4 million-to-$6 million on their budgets to buy a building, on top of the abatements that we'd already be offering," Anderson said.
Anderson said it became clear, early in negotiations, that the building was the main issue for ESAB. The company's existing facility was old and need of expensive repairs to keep it suitable for manufacturing. He said the county tried to identify other buildings in the region that could work, but local officials were unable to purchase one for the company.
Bryan said ESAB will begin moving equipment from Ashtabula to South Carolina this fall. In addition to the Ohio equipment, he said the company plans to fill the new factory with new assembly lines as well.
Bryan said ESAB's decision to move its plant had nothing to do with ongoing negotiations between the company and the United Auto Workers Local 1834. He said while contract talks and the company's relocation decision came about at the same time, the company was not using the threat to move as a bargaining tactic.
Officials with the UAW did not return calls on Wednesday.
Anderson said he doubts ESAB was trying to move to get out of the union contract.
"Everything that I heard from the company and the union itself was that the union contract was not an issue," Anderson said. He added that union officials told him that the company had not asked for wage or benefit cuts in exchange for keeping the jobs in Ohio.
