Plant closure puts nearly 400 people out of work in Elm City
The IWCO Direct plant in Elm City will move its equipment and operations to the company's headquarters in Chanhassen, Minn.Posted — Updated
IWCO Direct, 6030 US Hwy 301, prints and ships direct-mail advertisements. Officials told employees Thursday morning that the plant would be closing immediately.
Company officials said the credit crunch around the country led to fewer credit card advertisements to mail out. The plant's equipment and operations are being moved to the company's headquarters in Chanhassen, Minn.
With a population of 1,500, the loss of 380 jobs will affect the small town’s economy.
“Where do they go from here? That's the part that bothers me, where do they go from here. There are no jobs,” Sanders said.
“I think it is a big shock,” former employee Jim Boykin said.
Boykin worked at the plant back in the early 1970's. Like many people in Elm City, he says the town will not be the same without it.
“That plant's been here 30-plus years, with really, no interruption. There's been different owners, but there's really been no interruption in employment,” Boykin said.
“It hurt a lot of people. I mean, I felt bad for a lot of people, especially my brother. I have a brother who works out there. So I felt kind of bad for him, and I feel bad for the younger people,” Sanders said.
“These are difficult actions we must take to aggressively and pre-emptively react to the industry-wide decline in volume,” he said.
Laid-off IWCO Direct employees will receive two months pay and benefits.
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