AstroAir will pink slip 390
Jacksonville loses 2nd major employer
BY LELAND ACKER

The Astro Air plant on N. Bolton Street in Jacksonville will close in August, said officials from the plant's parent company, Luvata. Some of the jobs will be moved to Grenada, Miss., while others will be relocated to Mexico.

The Jacksonville Luvata Electrofin (formerly AST Electrofin) plant will not be affected by the closure.

Darrell Prcin, president of the Jacksonville Economic Development Corporation (JEDCO), said the closure will have a ripple effect on the local economy, as 390 jobs will be lost.

"It's very upsetting," he said. "As local businesses grow and become successful, they become attractive to national and international corporations. Unfortunately, this makes Jacksonville vulnerable to decisions that are being made in other states and overseas. These decisions will have a direct impact on families in Jacksonville, and ultimately our economy."

Mr. Prcin said officials from Luvata cited rapidly changing global markets and pricing pressures as the reason for the closure. He added that the community's offer of assistance would not change Luvata's decision.

"It will have a ripple effect in our economy," Mr. Prcin said. "It will affect banking and retail. When a community loses 390 jobs, it will have a ripple effect throughout the county."

Mr. Prcin said JEDCO remains optimistic.

"We're working with Texas Workforce Commission on a job fair scheduled for late March," he said. "We'll hold a second one a couple of months later."

Mr. Prcin said the closing date in August gives Jacksonville time to address the economic impact.

"It gives us time to bring in other businesses who will be able to utilize the available labor force in Jacksonville," he said. "For so long, unemployment has been so low. We remain optimistic."

As for the Luvata Electrofin plant, Mr. Prcin said JEDCO is still working with Luvata.

"They've assured us they plan on growing that business here," he said.

The announcement of Astro Air's closing marks the second major Jacksonville employer to announce a plant closing in two months. Jan. 31, Alliance Data Systems announced they will close their call center in April, impacting 230 jobs.