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200 jobs, P&G to leave WB
by Gregory R. Norfleet · News · February 15, 2018


About 200 workers at Procter & Gamble received notice Feb. 7 that the West Branch distribution warehouse will close in about two years or so, according to the company.


This “phase out” announcement comes at the same time the company told workers at its Iowa City location that it would cut about 500 jobs and relocate by 2020 its hair care and personal cleansing businesses to a new facility in Tabler Station, W.Va.

P&G spokesman Jeff LeRoy wrote in an e-mail to the West Branch Times that the phase-out will affect employees of DB Schenker, which makes up almost all of the workers at the West Branch site.

“We are currently studying options for the long-term use of this facility,” LeRoy wrote, “including the option of offering it for sale at some point. At present, we are not able to speculate about the outcome of this analysis.”

In addition to West Branch, P&G is also closing down operations at a site in Kansas City.

DB Schenker spokesperson Gina Ortiz issued a statement saying that company “will align its logistics operations with the next phase of P&G’s ongoing supply network transformation in North America,” she wrote. “There will be volume and staffing impacts to the DB Schenker operations in Iowa City, West Branch and Kansas City. The impacts and reductions will not be immediate; but will come in phases beginning in November of 2018 an extending into 2020.”

Only two P&G staff — one being site leader Cheryl Fischer — work at the West Branch location.

LeRoy said the two “split time” between West Branch and Iowa City; Fischer will be reassigned, but to which location will be determined over the next two to three years, and the quality tech employee’s new location will be determined through union negotiations.

P&G owns more than 1.3 million feet of warehouse space, but for the past few years only used the original warehouse and its 800,000 square feet.

“We opened six mega distribution centers across the country in 2014,” LeRoy said. “Consolidating most distribution from smaller sites to regional hubs is also part of the supply network transformation.”

Ortiz wrote in the DB Schenker statement that West Branch is one of its 55 locations and its 200 employees are among 7,000 on staff.

“We are committed to working through this transition and supporting our employees in a manner consistent with our core values,” she wrote.

Procter & Gamble owns two parcels of land in the West Branch industrial park which, according to Cedar County Assessor estimates, the company’s 143 acres of land — 106 on the original site and 37 on Council Street — will generate about $950,000 in property taxes this year.

“I think it’s too bad,” West Branch Mayor Roger Laughlin said. “But that’s the way business goes.”

He said P&G will still have to pay its property taxes, but is concerned that the company may appeal assessment estimates if the buildings are unoccupied.

“That could hurt West Branch quite seriously,” he said.

Kevin Rogers, executive director of West Branch Community Development Group, called P&G’s announcement “very disappointing.”

“It’s a disappointment they’re going to be losing their jobs,” he said. “But I credit P&G for (giving) this much advance notice. That helps.”

Back in 2002, P&G announced it would come to West Branch, began construction right away and had its first building at 160 Fawcett open in early 2003. The Fawcett Street location includes about 800,000 square feet of warehouse space.

In 2007, Duke Realty Corp. built for P&G a $15.3 million, 515,000-square-foot warehouse at 101 Council Street to use for P&G Hair Care LLC products.

P&G emptied that building a few years ago and put it on the market; City Administrator Redmond Jones II announced at the Feb. 6 City Council meeting that U.S. Venture would lease that building for 10 years to distribute tires and car parts. (See related story.)

The mayor said that U.S. Venture plans to provide 75 jobs, too.

“So that’s good,” Laughlin said.

Rogers knew about the tire distributor coming before P&G made its announcement.

“It could be a win-win for some of the employees,” he said. “It could also give West Branch residents opportunities if they’re looking for work.”

Some 16 years ago, West Branch convinced P&G to locate here, instead of sites in North Liberty and Iowa City, by offering Tax Increment Financing and other incentives.

City Finance Officer Gordon Edgar said his records are incomplete as to the total value of those incentives, but said that for the final three years, from 2010 to 2012, the city issued tax rebate checks of more than $1.2 million.

“In addition to that, there were tax abatements and rebates, but I can’t tell what amounts were actually rebated or abated,” he said.