Owens-Illinois Glass Company - Muncie, Indiana, Plant

PLANT TO SHUT DOWN - The Owens-Illinois plant in southeast Muncie will be closed down by Sept. 1, company officials announced Tuesday. The operation currently employs 337 persons. (Star Photo)

Owens-Illinois to Close

Plant Here by Sept. 1

An industrial plant which has provided employment for Muncie residents for more than three quarters of a century will close its doors by Sept. 1.

Owens-Illinois, Inc., announced Tuesday form its Toledo, Ohio, headquarters that its Muncie plant on Macedonia Avenue is being shut down "with reluctance." The plant manufacturers face panels and currently employs 337 persons.

The announcement was made by Sam F. Shillaci, vice president of the company's Consumer and Technical Products Division and general manager of television products.

IT WAS THE latest in a series of economic reverses for the Muncie community which recently included the threatened shutdown of Marhoefer Packing Co.

J. Roberts Dailey, president of the Muncie Chamber of Commerce, who was notified in advance of the public announcement by Owens-Illinois, said the businessmen's organization "stands ready to be the catalyst for a labor-management effort to work on the serious problem of job and industrial development in Muncie."

"The decision to close the plant was made with great reluctance and only after years of efforts to keep the plant operating," said Shillaci.

"However, we have no alternative because of the plant's age and its layout makes it impractical to adapt it to the production of the type of color television parts that now are required by the industry," he said.

"Our larger modern plants at Columbus, Ohio, and Pittston, Pa., are now supplying all of the needs of the available market and can continue to do so."

OWENS-ILLINOIS is the successor to Kimble Glass and Hemingray Glass. The latter located in Muncie after the huge natural gas finds in East Central Indiana set off a boom which brought many companies, including Ball brothers, here.

Hemingray announced in January of 1888 it would move part of its glass factory operations in Covington, Ky., to Muncie.

The insulators the company made have become collector's items in recent years.

Owens-Illinois purchased the plant when it was Kimble Glass in 1933 and two years later converted it to manufacture of glass blocks. Sales of both the glass blocks and insulators declined in the 1950's and production of both items ended in 1966.

THAT WAS six years after the plant started producing picture tubes for black-and-white TVs and two years after the plant was converted to manufacturing of color TV tube face plates.

At the time of the conversion of the plant in 1964, employment had declined to about 200 employees. The number was to rise much higher and employment has been relatively stable until the past year.

Schillaci said he had explored with other company divisions the possibility of their taking over the Muncie plant for their operations.

"Unfortunately, none of them have any need for the plant now," he added.

The plant's batch, furnace, and forming departments will cease operations at 7 a.m. Saturday, July 15, while other departments will continue operating until their work is completed. The plant is expected to be completely closed by Sept. 1.

A small maintenance and security force will remain at the plant after manufacturing operations end.

IN A LETTER to plant employees, Mr. Schillaci assured them that Owens-Illinois would do everything possible to help them find other employment in the Muncie area. Long-service employees who are eligible for early retirement will be offered that option and the company also will contact other O-I plants in the interest of plant employees who are willing to move to other cities.

Eligible employees will be paid severance pay in accordance with company policy, Mr. Schillaci said