Graham Packing Co. plans closure of Vandalia plant

The Graham Packaging Co. is getting ready to close its Vandalia plant, laying off 130 employees. The factory will stop operations by the third quarter of this year. The plant makes plastics bottles and used to employ over 800 workers before a series of earlier layoffs. In its letter to its employees, the company reportedly said that:  “The decision to close the Vandalia plant is not a reflection of the work force, but rather a result of the overall company strategy of plant rationalization and optimization of its network.

“These issues have resulted in an overcapacity situation in our plant network. Therefore, we are forced into consolidating plant operations.”

Vandalia Mayor Ricky Gottman had been part of a team of local business leaders and state Sen. Kyle McCarter, R-Lebanon, who met with company officials to try to persuade them to stay. Mayor Gottman said Tuesday the city had worked with the firm to modify its water bill to help it curb expenses and, in meetings dating back over the past year, had stood ready to assist in any way it could.

As a fallback position, the city and business leaders will be working with state officials to pursue talks with other companies that might want to take over the Graham plant.