Palestine plant to close
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EAST PALESTINE -- A local steel welding business will be closing its doors in the coming weeks, leaving its employees without jobs.
Steve Oliphant, CEO of TubeTech Inc. on East Taggart Street, confirmed on Wednesday that the company is in the process of being acquired by The Phillips Tube Group of Middletown.
The Phillips Tube Group consists of three other steel tubing companies, Oliphant said, adding that the local business will be merged into their existing facilities, resulting in the closure of the East Palestine facility.
The group has plants in Middletown and Shelby in Ohio and Pell City, Ala., he said.
More information about the group can be found online at phillipstube.com.
"We are disappointed in the outcome. We had hoped that the acquiring companies would continue to function in East Palestine, but they have a capacity at their plants to absorb our business," he said.
As a result, the 45 to 50 East Palestine employees will be laid off at some point, and they are aware of that, he added.
He also said a final closing date has not been set yet, although he anticipates production will continue through the end of August or the middle of September.
"We have an excellent workforce. They have been well appreciated over the years," he said.
TubeTech was started by Oliphant in East Palestine 29 years ago and currently has customers all over the country and even Mexico.
The company makes welded steel tubing primarily for the automotive and appliance industry, and Oliphant said about a third of the company's business is in Mexico.
He also said the 80,000-square-foot TubeTech facility will be listed for sale in the near future.
When asked what prompted the change, Oliphant was only willing to say, "The circumstances of the situation required that we seek an additional company to function with."
He said he and a few other employees will be assisting the new company with marketing plans.
He also said that the company in Salem that was associated with TubeTech closed a few months ago and all of the equipment transferred to the East Palestine facility.
Oliphant was not the CEO of that company, which was under different ownership, he added.
kwhite@mojonews.com