It was announced Wednesday, October 2nd that over the next 14 months, Gates Rubber Co. in Galesburg will be transitioning from a hose production facility to a core compounding mill. The transition means 120 union and non-union jobs will be cut. According to the Register-Mail, Gates employed nearly 400 workers in the late 1990s, as of 6 years ago, the site employed just under 200. Ani Vattano the Director of Corporate Communications told the paper that severance packages and professional job counselors will be offered to those affected by the lay-offs. She said the transition at Gates wasn’t driven by performance or financial viability – they are looking at how they can be more operational and more efficient. She added that approximately $1.5 million will be invested in the plant over the next few years for the transition – which includes new boilers, a hydraulic coding system, and a new roof. The switch from hydraulic hose production to core compounding means Gates in Galesburg will be producing the rubber to be sent to other facilities.
