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July 23, 2009
WOONSOCKET – Portola Tech International Inc. plans to move its operations from Woonsocket to Cumberland by Nov. 1 and cut 130 jobs in the process, The Call reported today.
Portola Tech said it expects to keep all of its 231 current employees until around Nov. 1, when more than half of them will be let go, the newspaper reported. The cuts will impact both hourly and salaried workers. Some of their work will be moving to Central Europe and Asia.
“This is truly a great day in the history of Portola Tech,” said Rick Schofield, president of Portola Tech’s parent company, Portola Packaging Inc., according to The Call. “Our board of directors has decided to invest the significant cash necessary to modernize and upgrade our supply chain. These investments will make us a more balanced global supplier with a strong North American manufacturing presence in our new Cumberland facility.”
Portola Tech was founded in 1960 as Tech Industries Inc. The company, which manufactures plastic packaging components, was acquired by Batavia, Ill.-based Portola Packaging six years ago and changed its name to Portola Tech International.
The consolidation of Portola Tech’s manufacturing operations comes less than a year after parent company Portola Packaging emerged from chapter 11 bankruptcy protection. The restructuring occurred after the company defaulted on loans and discovered accounting irregularities by its overseas subsidiaries.
The local subsidiary is moving to 35 Martin St. in Cumberland. Executives said the reason for the move is the deteriorating condition of the aging Woonsocket factory, known as the Alice Mill, which is roughly 130 years old. Before being purchased by Tech Industries, the plant was operated by Uniroyal Inc., the former United States Robber Company later acquired by Michelin, and prior to that the Woonsocket Rubber Co., according to The Call.
“The cost of keeping the building operating on a yearly basis is ridiculous,” Dan Carter, Portola Tech’s vice president of sales and marketing, told the paper. “It’s easier to just move to a newer facility.”
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