SABIC to Leave Pittsfield; 300 Area Jobs to Be Lost
 The company announced that it will close its Plastics Avenue headquarters. |
PITTSFIELD, Mass. — SABIC is moving its headquarters to Houston, and taking hundreds of jobs with it.
Mayor Daniel Bianchi said he was informed about the decision Thursday afternoon after being contacted by senior executive staff members.
"I think this was a decision that had nothing to do with the city. It had everything to do with their corporate mission," Bianchi said.
Saudi Arabia Basic Industries Corp.'s Innovative Plastics is moving some 300 jobs from the former General Electric site in Pittsfield to Houston but hasn't determined what will happen with the Polymer Processing Development Center in the city.
"Exiting the Pittsfield site was a logical yet very difficult business decision, knowing the important role our business and people have played in this community over the years," SABIC Vice President and Acting CEO Yousef Al-Benyan said in press release.
The company plans to relocate many of those workers to the Houston location. The transition is expected to be completed by mid-year 2016.
"As SABIC continues to expand in the Americas, we need many of the talented Pittsfield employees to be part of our strong regional team. We are committed to a smooth transition for our people and look forward to welcoming many of them to our Greater Houston area office," Al-Benyan said.
Bianchi said the city had a great relationship with local company officials but the decision to move to Houston was made by the international company's board of directors.
"The city of Pittsfield had a 1.9 percent drop in unemployment over the last year. The numbers were looking good. But, these are the kind of jobs that are significant," Bianchi said. "A lot of the people who work in that facility were Pittsfield people born and raised ... We certainly hope those who have the appropriate skill and background will seek employment [elsewhere in Pittsfield]."
State Rep. Tricia Farley-Bouvier said the company's decision is "disturbing news for Pittsfield."
"This is why we want to invest in our own homegrown companies," Farley-Bouvier said.
The Berkshire Chamber of Commerce issued a statement giving their "sincerest thoughts to those families impacted by this business decision." The Chamber promised to help connect those workers with new jobs in the county.
"It will be our priority to keep as many of these employees and young families within the Berkshires. In the short-term, it is critical that the region come together when faced with news like this, and focus on the need to create the best possible outcome for those impacted," the Chamber wrote on its Facebook page.
"For the long-term, this is a further demonstration of the need for us to better diversify our Berkshire economy. We must be strategic about how we build this place into an environment where small and medium sized businesses have access to the resources that they need, and can organically grow jobs and have success."
State Sen. Benjamin Downing echoed the sentiments in a Facebook post of his own.
"I share the shock, frustration and disappointment of all upon hearings the news about SABIC's decision to leave Pittsfield. My office will work with any and all impacted to lessen the pain from this blow and help our city recover," Downing wrote.
SABIC was also part of the Berkshire Innovation Center and it is unclear whether or not that relationship will be sustained. Bianchi said that consideration "pales" in comparison to the impact of closing the headquarters.
The mayor said the decision does not shake the city's push to build its advanced manufacturing and life science industry.
"The real focus for the future was the small and medium-sized manufacturing companies and they will still be here," Bianchi said.
The company announced last week that it would be closing its plant in Thorndale, Pa., as well. The moves are part of a corporate restructuring.
"The changes will enhance our global footprint to serve our customers locally while providing solutions globally," Al-Benyan said. "This reorganization will focus resources more intensively on the needs of each line."
Tags: closing, industry & manufacturing, jobs, moving, plastics, unemployment,
