Lawmakers ask Olin to keep 1,000 jobs in Ill.
William Garth, Sr, CEO of the CItizen Newspaper Group, INC
EAST ALTON, Ill. - Two federal lawmakers urged Olin Corp. on Wednesday to
reconsider its possible plans to move 1,000 jobs from its ammunition-making operation
in Illinois to Mississippi, cautioning the company to be mindful of their efforts in
Washington to steer business in its direction.
Democratic Sen. Dick Durbin and Rep. Jerry Costello, in a letter to Olin President and CEO Joseph Rupp, pressed for a meeting to discuss the companys plans to shift its Winchester
ammunition divisions Centerfire production from East Alton, a village 20 miles northeast of St.
Louis, to Oxford, Miss.
The legislators suggested they deserved the courtesy, saying they worked hard on Capitol Hill
to help Olin get sizable government contracts. Those deals included supplying Winchester
munitions to the Army and a $54 million deal the lawmakers called ``the largest ammunition
contract in the history of federal law enforcement, the letter said.
``Whenever Winchester needed help in Washington, we were quick to respond with good
results, Durbin and Costello wrote. ``That is why the preliminary decision to close the facilities came as a surprise to us and local stakeholders, many of whom have been working with or for the company for decades.
The lawmakers questioned the need to relocate, insisting ``the Winchester division appears
to be far from struggling in light of Olins recent announcement that the unit recently posted
its second-best quarterly earnings in its history. During the latest April-through-June period, the
company reported Winchester sales of $147.7 million, up $7 million over the same span last year.
Clayton, Mo.-based Olin, which also makes specialty chemicals, announced the possible move
earlier this month with little public elaboration, stunning Illinois lawmakers and the operations
union-represented workers.
Valerie Peters, a spokeswoman for Olins Winchester division, said Wednesday that no
decision has been made as to when or if the division would move.She said talks were continuing between the company and ``key stakeholders,including union workers. She added that Olin would be willing to discuss the matter with Durbin and Costello.
Durbin and Costello warned that moving the Centerfire line and the jobs could further erode
the job scene in East Alton, home to about 7,000 residents, and the rest of Madison County, where unemployment already surpasses 10 percent.
Word that the Centerfire jobs may be heading south prompted East Altons mayor, along with other elected and business leaders, to scramble to meet with state officials to pinpoint
any assistance for Olin that would encourage the Winchester operation to stay put.
It wouldnt be the first time Olin moved jobs out of Illinois. Several years ago, the company
shifted the manufacturing of its Rimfire line the .22-caliber devices that propel power tools
such as nail guns to Mississippi, along with 150 jobs. The company claimed it was a cost-saving
measure.
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