by Jeff Saunders
Reporter
Macedonia -- April was not a good month for the city after it learned a second major employer would be closing its doors.
Just a week after the city announced building material supplier Norandex would move its worldwide headquarters to Hudson, Excello Engineered Systems on Bavaria Road announced it is planning to close its doors permanently.
In an April 21 letter sent to Mayor Don Kuchta, Kim Stevenson of Excello's human services department said the company plans to close down the Macedonia facility and permanently lay off 165 employees.
The closure is expected to begin at about the end of May.
Excello manufactures plastic shields placed inside car doors. According to Stevenson's letter, the move is due to an "abrupt and unforeseen loss of business with the Ford Motor Company," one of the firm's largest customers.
Calls made to Excello and to Resilience Capital Partners, the Beachwood-based private equity firm which purchased Excello in 2004, were not returned.
"Anytime you lose a company, it's going to have an effect," said Kuchta. "We want to be on the plus side and always remain on the plus side and when something like this happens, you have to take a step back."
City Finance Director Steve Brunot said that the loss of Excello and its $7 million payroll will cost the city about $140,000 in annual income tax revenue.
Brunot said Excello's closure, along with the recently announced plans by Norandex on South Bedford Road to move to Hudson, is going to cost the city. (See related story above.)
With plans to increase personnel from 65 to about 95 employees, Norandex's payroll is expected to jump from roughly $3 million to about $5 million.
Brunot said loss of the 65 Norandex workers amounts to a $60,000 annual loss in income tax revenue.
Brunot said that although the long-term cost will be around $200,000 per year from the loss of both companies, the city will only lose about $110,000 in income tax revenue this year, $60,000 of that from Excello.
E-mail: jsaunders@recordpub.com
Phone: 330-688-0088 ext. 3169