Poor economic conditions in housing industry blamed for brick plant's shutdown
By TIM GULLA Ledger Staff Writer tim@gaffneyledger.com

Hanson Brick and Tile is blaming a lingering downturn in the construction industry for its decision to close its Blacksburg plant, a move that will put 39 people out of work beginning Dec. 31.

A Hanson Brick official, east region marketing manager Greg Snowman, confirmed Wednesday that employees were notified of the plant closure late last week.

"It's basically the economic conditions of the housing and building industry," Snowman said.

"We've got, in the Southeast market, basically a surplus of brick supply that's difficult to move right now. Therefore it didn't make sense to operate as many facilities as we have."

The Blacksburg plant is the only Hanson Brick facility being impacted, Snowman said.

Snowman said the plant will shutter at the end of the year but inventory likely will be shipped until March 2008.

There are no plans for the facility other than closure. Snowman could not say if it would be put up for sale or reused in a different fashion.

Blacksburg Mayor David Hogue said the company's decision is a major blow to Blacksburg.

Besides providing good, family sustaining jobs to local residents who were very loyal to their employer, Hogue said the Hanson plant was the largest purchaser of natural gas from Blacksburg.

"It comes at a bad time, not only for those people who had jobs, but for the town of Blacksburg," he said.

He didn't discount the company's explanation. "Building has definitely slowed up and around Blacksburg," he said.

Snowman said the company would be offering severance packages to the employees and said there possibly would be jobs available for those willing to relocate to other plants, such as those in Monroe, N.C. or Columbia.

Officials from the state Department of Commerce and the South Carolina Employment Security Commission already are planning a rapid response meeting with employees to advise them of job search services and assistance they can acquire, such as job retraining programs. A meeting likely will be held with employees in early December, said Joan Penland, area director for the S.C. Employment Security Commission.

Jim Cook, executive director of the Cherokee County Development Board, said he's already been advising some upcoming new employers in the region of the availability of Hanson workers.

Hanson Brick just recently came under new ownership.

Heidelberg, Germany-based Heidelberg Cement completed its $16 billion purchase of England-based Hanson PLC in August, creating the world's second largest construction materials business.

The combined company employs about 70,000 people in 50 countries, though roughly half of the international companies' business was in the United States.

The Blacksburg plant, which Snowman said opened in 1966, primarily made red brick for residential and commercial purposes.

While home sales are slowing, one industry officials said the situation is far from dire for South Carolina builders.

This year still is the seventh best year of home sales on record and Mark Nix, executive officer of the Homebuilders Association of South Carolina said South Carolina still is a very strong market. South Carolina, he added, has not had as many issues with sub-prime lending as other markets like California and Michigan.

"We're still doing quite well," he said.

Nationwide data, however, shows new home starts are indeed declining across the country. A recent National Association of Home Builders report showed single-family housing starts dropped 7.3 percent in October to a monthly production rate not seen since Oct. 1991.