Wellman Plastics Recycling investors plan to create 100 jobs, in addition to retaining the 163 employees at the Johnsonville plant, according to a statement released by the company.
The investor group, which is being led by J.H. Whitney & Co., has plans to invest three million dollars in the Johnsonville location, which was slated to close in November.
Wellman Inc. announced plans to close both the Johnsonville and the Palmetto plants in September.
The announcement about the shutdown came after the company filed for Chapter 11 of the U.S. Bankruptcy Code for the Southern District of New York on Feb. 22, which was cited as the reason for the closings by the company spokesman Steve Ates.
Filing under Chapter 11 of the U.S. Bankruptcy Code frees a company from the threat of creditors’ lawsuits while it reorganizes its finances. The debtor’s reorganization plan must be accepted by a majority of its creditors. Unless the court rules otherwise, the debtor remains in control of the business and its assets.
The Department of Commerce and Florence County, worked to secure a purchaser of the Johnsonville facility upon hearing the news of the closure. Once the investors signed on, an agreement was made by the Department of Commerce to provide a $500,000 Community Development Block Grant to Florence County for on-site improvements for the Johnsonville facility.
CEO of Wellman Inc., Mark Ruday, said in a statement, that the day marks an important step for the company.
“Most importantly, I am pleased to have reached a conclusion that not only is in the best interest of Wellman Inc.’s various stakeholders, but also the employees in Johnsonville and the surrounding community,” Ruday said.
Although this is good news for the employees at the Johnsonville plant, employees of the Palmetto plant will still be out of a job unless they decided to travel to Johnsonville and apply for one of the 100 newly created jobs.
S.C. Gov. Mark Sanford said in a statement that the purchase of the Johnsonville plant shows how Florence County is dedicated to growth.
“As well, this news demonstrates that efforts made to establish a business-friendly environment are working to continually attract investment and opportunity to our state,” he said.
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