The Herald, Sharon, Pa.

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December 10, 2013

CCL revision anticipates job growth

HERMITAGE — Greg Koledin of Wesex Corp., the West Middlesex development consultant working with CCL to expand the Hermitage plant, said local officials are working quickly to build the expansion to try to take on as much of the Canadian equipment and resulting production capacity as they can.

Koledin added it will depend on the space that can be provided as to what equipment will be moved to Hermitage.

Hermitage commissioners in October approved a 50,000-square-foot addition to CCL’s plant at 1 Llodio Drive, but the company has come back with a new plan to also expand the former neighboring RMI Titanium building by 38,000 square feet – nearly doubling is size – and build a connection between the expanded buildings.

Hermitage Planning Commission recommended approval of the revised land development plan Monday.

The company on Nov. 22 announced it was closing its Canadian plant in Penetanguishene, Ontario – the closing is expected to take into 2015 – because it has not been profitable since 2009.

Everything the so-called Penetang plant produces ships to the U.S., a Canadian television station reported. The rise of the Canadian dollar also hurt the plant’s competitiveness, CCL said.

One hundred and seventy workers will lose their jobs, but the Hermitage plant is expected to hire 60 – 20 per shift – once the expansions are complete.

CCL said it is investing $25 million in its Hermitage and Guanajuato, Mexico, sites in 2014 and 2015.

The Hermitage project calls for expanding CCL’s plant to increase manufacturing capability, while the former RMI building on Freedland Road will be used to warehouse raw materials and finished product, Koledin said.

The CCL building was built in 1986 and expanded in 1993 and 2005. In October, the city approved consolidating the CCL and former RMI properties into one parcel.

With the additions, CCL would have 238,000 square feet under roof at its original plant, and 76,000 square feet at the former RMI building.

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