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MIDDLETOWN — A deal between two steel processing companies would eliminate scores of jobs from the Middletown area.
Announced Tuesday, the deal between Worthington Industries, Inc., and MISA Metals, Inc., would close some of MISA’s Middletown facilities, a move which will eliminate more than 100 jobs.
Columbus-based Worthington Industries and Marubeni-Itochu Steel America Inc. announced they struck a deal to form a joint venture of their steel building products companies. The steel companies agreed in principle on a joint venture of Dietrich Metal Framing, a subsidiary of Worthington, and ClarkWestern Building Systems, a subsidiary of MISA.
In the process, Worthington will acquire three of MISA Metal’s facilities in Ohio and Tennessee, closing MISA’s corporate office, the main plant and what’s called blue sky plant in Middletown probably in the next couple months, said Cathy Lyttle, Worthington Industries spokeswoman.
Approximately 113 employees who will lose their jobs as a result will receive severance from MISA, she said.
“It just did not fit into our production structure as it’s been an underperforming asset for MISA for some time,” Lyttle said.
MISA’S tension level plant in Middletown, which has about 13 employees, will stay open.
Local MISA property could be sold
Worthington Industries Inc. said it likely will consider selling the manufacturing buildings on the MISA property in Middletown once it acquires the property from a deal expected to close by the end of the month.
Worthington and MISA Metals Inc. announced Tuesday they reached an agreement on a joint venture to combine Dietrich Metal Framing, a subsidiary of Worthington Industries, and ClarkWestern Building Systems, a subsidiary of MISA that makes cold-formed steel drywall studs and accessories. The MISA property includes a corporate office, main plant, its blue sky plant and tension level plant, a total market value of $70 million for capital and fixed assets, according to Cathy Lyttle, a Worthington spokeswoman. However, the tension level plant, which has about 13 employees, will stay open, she said.
One of the reasons the Middletown facilities were picked to close, Lyttle said, is because Worthington has operations in Monroe — which employs 135 workers at 350 Lawton Ave. — where some equipment will be moved.
MISA will get a 75 percent interest in the joint venture and Worthington will get a 25 percent interest while acquiring MISA’s three steel processing facilities in Ohio and Tennessee, according to the companies.
“Our goal all along — and in particularly the past two years — is to find the best solution for our metal framing company,” Lyttle said.
She said metal framing, part of the construction industry, was hit by the economic downturn. By combining the two, Lyttle said officials believe “they will perform better.”
Dietrich and ClarkWestern would consolidate operations for the joint venture as well. One ClarkWestern Building Systems facility will close, according to the companies.
The ClarkWestern location in West Chester Twp., 9100 Centre Pointe Drive, will not close. MISA has an office in West Chester Twp., 9050 Centre Pointe Drive, according to its website. There are 29 employees associated with MISA’s metal processing in West Chester Twp. who will lose their jobs, Lyttle said.
Contact this reporter at (513) 705-2551 or clevingston@coxohio.com.
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