ASHTABULA TOWNSHIP — Aloterra Packaging, 3325 Middle Road, will be closing and the company will permanently layoff 39 full-time employees on or about Oct. 6, according to a letter from the Ohio Department of Job and Family Services to the employees.
Aloterra’s facility in Ashtabula employs less than 50 employees and there’s no union, according to the letter.
Employees affected by this facility closing include drivers, operators, managers, maintenance workers, shipping and receiving employees and mechanics. All employees have been notified, according to the letter.
Greg Myers, executive director of Growth Partnership for Ashtabula, said he’s heard of the closing, but did not know any details or whether any other of the company’s plants will be closing, as well.
“We are trying to collect information,” he said.
Ashtabula Township Trustee Bambi Paulchel said she didn’t know Aloterra was closing.
“It’s not good news,” she said. “We hate to see any business leave the township.”
Company officials could not be reached for comment Friday.
Aloterra, which has locations around the county, manufactures products made from locally grown miscanthus grass. The Ashtabula facility employs more than 60 people and invested more than $15 million in equipment and improvements, according to a release from the company.
Aloterra leased the property from Middle Road Properties for five years in March 2015, according to a copy of the agreement provided to the Sheriff’s Department.
The agreement allowed Aloterra to renew the lease for another five years at $5,600 per month or $336,000 for the whole term, and also includes an option to purchase the property for $400,000 before the first lease expires, or $100,000 after the second five-year term.