ThisWeek CW 07/14/2011
Timing played a part in HFI Inc. LLC’s decision to move its operations from two plants in Groveport and Obetz to a single facility in Canal Winchester, according to company CEO Walter Dennis.
The move, announced last week, will eventually bring more than 200 jobs to Canal Winchester.
“Over the next two years, we’ll transfer over about 228 associates,” Dennis said. “First phase will be complete by the end of the year – that will be 98 associates from our Groveport location. That’s about $5 million in annual salary. Then another 40 in first quarter (of 2012) with about $2.3 million in annual salary.”
Groveport will be the first HFI location vacated, according to Dennis, and then HFI will begin the transition of administrative staff members out of Obetz. Hourly employees there will stay until the beginning of 2013.
Canal Winchester Mayor Michael Ebert told city council on July 5 that HFI planned to buy the current TS Trim manufacturing plant at 59 Gender Road, at the corner of Gender Road and Walnut Street. TS Trim will consolidate its operations at the company’s primary Canal Winchester location at 6380 W. Canal St., he said.
“HFI currently has two plants and they’re in the process of purchasing the TS Trim plant; (TS Trim) are getting out of headliner business and taking their employees to the Canal Street location,” Ebert said. “(HFI) also does other manufacturing of auto products so when the changeover of lines happens is when they’ll finalize the move over.”
HFI, like TS Trim, is an automotive manufacturer supplier.
Dennis said the two companies have worked closely together for 30 years. He said the headliner plant has been half empty as TS Trim has worked to exit that business.
“TS Trim is phasing out of the headliner business,” he said. “It will take about three and a half years for the business that is in that building now to slowly go away. As that happens, HFI will come in and bring our processes and products.
“(HFI) was looking for a building to consolidate in, but with 140 hourly staff in Groveport and Obetz, it would be very difficult to move to another part of (central Ohio) – like Marysville – and expect them to relocate, too.”
Dennis said there wouldn’t be a big hiring of new employees; primarily, there will be a transition of employees between the companies.
This isn’t a merger, he said: HFI is acquiring TS Trim’s building and products. All the TS Trim employees were given the option to stay through the end of the headliner program, working for HFI. They then will have the option to return to TS Trim’s operations in the future, Dennis said.
TS Trim will not lay off any employees, according to Ebert. He said TS Trim would train all relocated employees on the Honda door component production and assembly line as the company expands its production of those components.
He said the additional jobs “will be quite a significant thing” for Canal Winchester.
“We’re looking forward to having HFI in town,” Ebert said. “I think they’ll be a great company to work with.”