GREENVILLE — Task force members racing to save the Greenville Electrolux plant will travel to Sweden if they can get an audience with company President Hans Straberg.
The group slated to travel to Stockholm sometime during the first two weeks in December would include city Manager George Bosanic, Mayor Lloyd Walker, Gov. Jennifer Granholm, U.S. Congressman Dave Camp and grocer-philanthropist Fred Meijer, a native of Greenville.
The city will pay for the travel expenses of its two city officials.
The team wants to make a one-hour presentation to Straberg, Bosanic said. On Oct. 21, Electrolux said it was considering closing the 2,700-employee Greenville plant and moving production to Mexico, with a decision set for year end.
On Thursday, the quickly organized task force had its second meeting and agreed to hire two contractors — Rockford Construction Co. for estimates to build a new Electrolux plant, and Wondergem Consulting Inc. to prepare the group for an audience with the chief of Electrolux.
Greenville and the Michigan Economic Development Corp. agreed this week to split the $25,000 cost for consultants.
The first company, Rockford Construction, will cost $20,000. It was chosen, Bosanic said, to develop a concept for a new plant and show the economic advantages for Electrolux to stick around.
“If Electrolux moves to Mexico or a Southern state, it would have to build a new facility,” Bosanic said. “When we look at the dollar amounts, we’d be at a disadvantage if we’re not considered in the same vein.”
MEDC officials are ready to offer a combination of state tax incentives, including a Renaissance Zone and a Michigan Economic Growth Authority package that would save $6.5 million in taxes to the refrigerator giant.
Details still need to be hammered out to figure out ways to finance a new plant, using a mix of state and federal grants, industrial bonds and leases or buyback options. If approved, the government-backed plant would be built north of Vadeinse Road in the new industrial park across the road from the existing site.
The inefficient, 100-year-old plant isn’t the biggest hurdle, though. It’s labor costs. Electrolux estimates it would save $81 million a year with a move to the cheaper labor environment in Mexico, where hourly rates are one-tenth those in Greenville.
Workers in Greenville are paid $13 to $15 an hour, but with benefits that cost goes up to the $25 range.
Officials with the United Auto Workers are working on a proposal to lower labor costs at the plant, but they are not ready to reveal details yet, Bosanic said.
The task force is getting some Grand Rapids help through Meijer. He called to offer his help and share some advice, Bosanic said.
“He is very concerned, genuinely concerned,” Bosanic said. “He suggested we contact Birgit Klohs from The Right Place program.”
Klohs is helping the group pursue a mission to Sweden. The Greenville contingent will have to hurry, though.
“As we understand it, the country virtually shuts down Dec. 15” to celebrate Christmas, Bosanic said.
When the task force talks to top executives, they will emphasize the dedication of the workers at the plant, who could have reacted to the maybe-Mexico news with anger or sabotage.
“Since Oct. 21, I’ve been told by the company and the union that the quality and quantity of product has actually increased,” Bosanic said.
“That tells you something about the character of that work force.”
The task force meets again Tuesday.
From mlive.com