Winona PVD Closing Down By Year’s EndWinona PVD Coatings is closing its doors at the end of the year and over 100 people will be without jobs.
Warsaw Mayor Joe Thallemer said it was a surprise and the city didn’t see it coming.
A Work Adjustment Retraining Notification (WARN) sent to the Indiana Department of Workforce Development, dated Tuesday, states that Winona PVD Coatings LLC expects to close its facilities at 1180 Polk Drive and 1095 Polk Drive, Warsaw, on Dec. 31.
“Winona expects both facilities will be closing and all employees will be laid off. The closure and lay-offs are expected to be permanent,” the WARN states. “This shutdown is expected to affect all employees in every job classification.”
It also states that Winona PVD “pledges its sincerest efforts to provide employees with needed assistance during this difficult time.”
Information on Workforce Development’s website states that 108 workers are affected, and that Winona PVD provides metal coating, engraving and allied services to manufacturers.
Thallemer said he just got a copy of the WARN at noon Wednesday and it’s the only indication of the closing the city had received.
He said the city is working with Kosciusko Economic Development Corp. Executive Director and CEO Alan Tio and WorkOne to provide benefits and job placement that might be needed for those employees who are laid off.
In May 2016, Winona PVD announced 50 new manufacturing jobs in Warsaw and that it would invest $10 million in a new production line. At that time, according to a news release from Kosciusko Economic Development Corp., Winona PVD employed 155 people in three buildings. The company’s Warsaw location opened in 2007 and went into production in 2008.
In September 2015, the Warsaw Common Council approved two resolutions for Winona PVD to expand its facility. The first resolution was the issuance of certain Redevelopment Commission tax increment special taxing district bonds. The bonds were not to exceed $865,000, and the interest rate for the bond was not to exceed 6.5 percent and not mature before Feb. 1, 2030.
The second resolution was an agreement between Winona PVD, the city and Redevelopment Commission that if the TIF revenues are insufficient to pay the principal, Winona PVD is required to pay the remaining amount.
Thallemer said, “We approved three bonds over the years for them for the purchase of equipment. We don’t know any of the surrounding circumstances of the closing.”
He said the agreement between the city and Winona was written to protect the city and the company had to back the funds up.
“We feel there’s adequate protection for the city,” Thallemer said.
Winona PVD leased the buildings in the Warsaw Tech Park through Westhill Development. While Thallemer didn’t know too much about that, he said he was sure the buildings would be marketed for lease or sale.
Thallemer said Winona PVD grew quickly over the last six or seven years and had a very promising propriety, so for it to quit abruptly was a surprise.
“We are going to do all we can and as quickly as we can to provide the employees with other employment opportunities,” he said.
