Cenveo envelope plant in Fayette to cut half of staff
The operator of an envelope plant in Fayette County will start layoffs to reduce employment by nearly half and could move to a smaller space.
Cenveo Inc. of Stamford, Conn., the world's largest envelope maker, continues to be pressured by the rise of email and online bill paying, which reduces demand for envelopes.
Mark S. Hiltwein, president of Cenveo's envelope group, said on Monday that the company knew there was too much capacity in the industry when it purchased the assets of National Envelope out of bankruptcy in September for $25 million.
The purchase included the plant and 400 workers in Upper Tyrone, the largest of eight plants Cenveo acquired.
“We are going to reduce capacity by 50 percent in that location,” Hiltwein said. “At the end of the day, there will be more than 200 employees left. ... We'll start moving equipment out of there as soon as possible.”
He said Cenveo would like to stay in the area because it has a good workforce, “but we are having a hard time negotiating with the landlord,” and that might force a move. Cenveo hopes to sublease about half the plant to others.
The plant is about 400,000 square feet in size, or nearly eight football fields.
If Cenveo moves, one possibility is the former Sony Corp. television plant, near the New Stanton interchange of the turnpike in Westmoreland County, Hiltwein said. Don Smith, president of Regional Industrial Development Corp., which owns the former Sony plant, said talks with Cenveo are preliminary.
The owners of Cenveo's plant in Upper Tyrone is Spirit Realty Capital Inc. of Scottdale, Ariz., according to county property records. A spokesman could not be reached. Cenveo's lease expires in 2020, Hiltwein said.
National Envelope's parent, NE Opco Inc. of Frisco, Texas, sought Chapter 11 bankruptcy protection in June for the second time in three years. It had not reported a profit since 2007, blaming sales declines on electronic competition and “a continuing decline in the volume of U.S. mail.”
Hiltwein said after its purchase of National Envelope, Cenveo knew there were regions with excess capacity.
“There would have to be some reductions because there were too many factories, by 20,” he said. “We're a U.S.-based company, and we're committed to keeping a healthy company in the U.S.
“That requires us to do something I don't like in shrinking the facility. We want to keep as many people employed as possible.”
A spokesman for United Steelworkers Local 198, which represents workers at the plant, could not be reached.
John D. Oravecz is a staff writer for Trib Total Media.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Judge rules against PPG in lawsuit over pollution
- ‘Cadillac tax’ hangs over insurance costs
- Idea Foundry CEO Matesic decides which new companies get help from his Pittsburgh business incubator
- Pittsburgh unemployment rate steady as job market shrinks
- Steelworkers union says ATI talks to resume
- Sniffer lets PixController detect methane gas leaks
- ModCloth gets physical
- Trib Total Media puts 9 Western Pa. newspapers up for sale
- Shale gas violations down as DEP steps up inspections
- Alpha Natural Resources executive resigns amid restructuring
- Gasoline prices down nearly a dime in Pittsburgh area